Please try adding the following to your network device definition:
<target dev='veth0'/>
For instance my full definition looked like:
<interface type='network'>
<mac address='52:54:00:67:86:cf'/>
<source network='default'/>
<target dev='veth0'/>
</interface>
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https://bugs.launchpad.net/bugs/1331276
Title:
Starting lxc container from libvirt disconnects host network
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