This is working for me and several others, we need to find what is different in your case.
Is that "root@juju-5e1208-basic-yakkety-newton-7" system a bare metal - I'm wondering if we are talking about 2nd or 3rd level virtualization. What does "systemd-detect-virt" report on there? Also you should still have: /etc/modprobe.d/qemu-system-x86.conf This is setting nested to 1 by default in Yakkety as you had in the past. I wonder about the missing sysfs path "/sys/module/kvm_intel/parameters/nested" could you check if the module is still having that argument. You could run "modinfo kvm_intel". I checked to be sure, but I found the sysfs path to exist and the module to hold the option in X/Y/Z. What are the kernel versions you are running on in Host and first Guest? ** Changed in: libvirt (Ubuntu) Status: New => Incomplete ** Changed in: libvirt (Ubuntu) Assignee: (unassigned) => Hua Zhang (zhhuabj) -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/1683670 Title: 2nd/3rd level virt on Yakkety and later To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/libvirt/+bug/1683670/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs