Naming this derivative kernel "kvm" was not the best idea in hindsight.
It was done to achieve fast booting guest images. Towards that goal
everything was streamlined and part of that is keeping per-cpu
structures smaller by limiting the number of CPUs.

The generic kernel (which should be installed via the linux-generic
meta-package) can run as a VM guest but for that has the downside of
pulling in some bigger dependent packages (linux-firmware, crda, linux-
modules-extra, ...). To avoid that there is the linux-virtual meta-
package which will only pull in the kernel and a sub-set of kernel
modules (without linux-modules-extra) and the other dependencies. That
reduces its on-disk footprint.

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https://bugs.launchpad.net/bugs/1967131

Title:
  CONFIG_NR_CPUS=64 in -kvm is too low compared to -generic

Status in linux-kvm package in Ubuntu:
  New

Bug description:
  -kvm flavor has CONFIG_NR_CPUS=64 although -generic has
  CONFIG_NR_CPUS=8192 these days.

  It will be a problem especially when launching a VM on top of a
  hypervisor with more than 64 CPU threads available. Then the guest can
  only use up to 64 vCPUs even when more vCPUs are allocated by a
  hypervisor.

  I've checked the latest available package for Jammy, but there was no change 
around CONFIG_NR_CPUS.
  https://launchpad.net/ubuntu/+source/linux-kvm/5.15.0-1003.3

  $ lsb_release -r
  Release:        20.04

  $ dpkg -S /boot/config*
  linux-modules-5.4.0-105-generic: /boot/config-5.4.0-105-generic
  linux-modules-5.4.0-1059-kvm: /boot/config-5.4.0-1059-kvm

  $ grep CONFIG_NR_CPUS /boot/config*
  /boot/config-5.4.0-105-generic:CONFIG_NR_CPUS_RANGE_BEGIN=8192
  /boot/config-5.4.0-105-generic:CONFIG_NR_CPUS_RANGE_END=8192
  /boot/config-5.4.0-105-generic:CONFIG_NR_CPUS_DEFAULT=8192
  /boot/config-5.4.0-105-generic:CONFIG_NR_CPUS=8192
  /boot/config-5.4.0-1059-kvm:CONFIG_NR_CPUS_RANGE_BEGIN=2
  /boot/config-5.4.0-1059-kvm:CONFIG_NR_CPUS_RANGE_END=512
  /boot/config-5.4.0-1059-kvm:CONFIG_NR_CPUS_DEFAULT=64
  /boot/config-5.4.0-1059-kvm:CONFIG_NR_CPUS=64

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