virtualization was disabled in the BIOS (default settings):
kernel: [ 476.938973] kvm: disabled by bios
I think this is what caused the problem, closing...
** Changed in: vm-builder (Ubuntu)
Status: New => Invalid
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libvirt.libvirtError: internal error no supported architecture for os type 'hvm'
https://bugs.launchpad.net/bugs/445253
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