Verified with the 4.15.0-1010-kvm Bionic kvm kernel + uvtool 0~git140-0ubuntu1, 
it works.
I will close this bug.
Thanks.

** Changed in: ubuntu-kernel-tests
       Status: New => Fix Released

** Changed in: linux-kvm (Ubuntu)
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/1765005

Title:
  Unable to start a KVM inside a KVM instance running with 4.15 KVM
  kernel

Status in ubuntu-kernel-tests:
  Fix Released
Status in linux-kvm package in Ubuntu:
  Invalid

Bug description:
  The kvm smoke test failed on a KVM system running 4.15.0-1004-kvm
  kernel.

  Steps:
   1. Deploy a KVM instance with Bionic, install linux-kvm on it
   2. Run the following command for the ubuntu_kvm_smoke_test:
    git clone --depth=1 git://kernel.ubuntu.com/ubuntu/autotest-client-tests -b 
master-next
    git clone --depth=1 git://kernel.ubuntu.com/ubuntu/autotest
    rm -fr autotest/client/tests
    ln -sf ~/autotest-client-tests autotest/client/tests
    AUTOTEST_PATH=/home/ubuntu/autotest sudo -E autotest/client/autotest-local 
--verbose autotest/client/tests/ubuntu_kvm_smoke_test/control

  Command:
    uvt-kvm create bjf-test release=xenial arch=amd64

  Result:
    uvt-kvm: error: libvirt: Requested operation is not valid: network 
'default' is not active

  ProblemType: Bug
  DistroRelease: Ubuntu 18.04
  Package: linux-image-4.15.0-1004-kvm 4.15.0-1004.4
  ProcVersionSignature: User Name 4.15.0-1004.4-kvm 4.15.15
  Uname: Linux 4.15.0-1004-kvm x86_64
  ApportVersion: 2.20.9-0ubuntu5
  Architecture: amd64
  Date: Wed Apr 18 10:34:51 2018
  ProcEnviron:
   TERM=xterm-256color
   PATH=(custom, no user)
   XDG_RUNTIME_DIR=<set>
   LANG=C.UTF-8
   SHELL=/bin/bash
  SourcePackage: linux-kvm
  UpgradeStatus: No upgrade log present (probably fresh install)

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