My workarround is to add this to the end of /etc/apparmor.d/abstractions
/libvirt-qemu

# Work around for bug 696318 in KVM
/var/lib/libvirt/images/** r,

It works for me on ubuntu precise 12.04

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https://bugs.launchpad.net/bugs/696318

Title:
  Starting VMs on qcow2 format with base images in level three fails

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