Public bug reported:

Physical host running 16.04 LTS on amd64 (i7):

Linux host 4.4.0-28-generic #47-Ubuntu SMP Fri Jun 24 10:09:13 UTC 2016
x86_64 x86_64 x86_64 GNU/Linux

On it I'm running an am64 16.04 LTS VM:

Linux vm1 4.4.0-31-generic #50-Ubuntu SMP Wed Jul 13 00:07:12 UTC 2016
x86_64 x86_64 x86_64 GNU/Linux

I have nested virtualization enabled :

vm1$ cat /sys/module/kvm_intel/parameters/nested
Y

When I try and install vm2 (tried both 16.04.1 i386 and amd64), the
installer hangs on first menu, at language selection. qemu-kvm goes up
to 100% cpu, and the hangs, have to virsh destroy/kill the KVM process.

Other info on vm1:

vm1$ cat /etc/modprobe.d/qemu-system-x86.conf:

options kvm_intel nested=1


Version of libvirt-bin & kvm:

on host1:

libvirt-bin:
  Installed: 1.3.1-1ubuntu10.1
  Candidate: 1.3.1-1ubuntu10.1
qemu-kvm:
  Installed: 1:2.5+dfsg-5ubuntu10.4
  Candidate: 1:2.5+dfsg-5ubuntu10.4

on vm1:

libvirt-bin:
  Installed: 1.3.1-1ubuntu10.1
  Candidate: 1.3.1-1ubuntu10.1
qemu-kvm:
  Installed: 1:2.5+dfsg-5ubuntu10.4
  Candidate: 1:2.5+dfsg-5ubuntu10.4

** Affects: linux (Ubuntu)
     Importance: Undecided
         Status: New

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https://bugs.launchpad.net/bugs/1614209

Title:
  16.04 LTS hangs on installer when running nested virtualization on
  16.04 host.

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