Problem solved, I think.

/dev/pts was wrongly mounted as:
none on /dev/pts type devpts (rw,mode=620,mode=620)

... when it should be:
none on /dev/pts type devpts (rw,noexec,nosuid,gid=5,mode=0620)

This could now be an initramfs issue - I installed dropbear recently and
it starts up udev and various other initramfs-scripts.

This is not an libvirt bug.. never was ;)

So where does the bug belong now?

-- 
chardev: opening backend "pty" failed
https://bugs.launchpad.net/bugs/607636
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