I took a look and the packagekit in -proposed DOES NOT fix the issue.

It does not fix the issue even though its behavior is now aligned with apt 
(using the same solver)
This is explained by the fact that APT now does not work neither.

After some effort on debugging, I realized that recently some virt
versions landed in -updates and this makes APT not able to install
libvirt-daemon-system anymore when it is requested to install virt-
manager.

If I remove the -updates, APT can have the legacy good behavior,

Still investigating but at the end of the day, we might need to fill a
new bug

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https://bugs.launchpad.net/bugs/2148469

Title:
  `libvirt-daemon-driver-qemu` prefers `qemu-system-x86-hwe` to satisfy
  `qemu-kvm | qemu-system` dependency

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