For the record, psivaa says  virtualbox is installed, which could cause
this.  However lsmod didn't show vbox* kernel modules loaded.  Waiting
to see whether after removing virtualbox through software center and
rebooting, the problem is fixed.  Since lsmod didn't show the module
loaded, I'm not too optimistic.

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https://bugs.launchpad.net/bugs/1057024

Title:
  internal error Process exited while reading console log output: char
  device redirected to /dev/pts/1 error when creating a vm

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