Do you have any apparmor related messages in the kernel log file when
trying to start the machine?

** Changed in: libvirt (Ubuntu)
       Status: New => Incomplete

** Changed in: libvirt (Ubuntu)
   Importance: Undecided => Low

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libvirt executing /usr/bin/qemu-kvm fails with Permission denied
https://bugs.launchpad.net/bugs/575162
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