Answers to some of your questions:

Can you only get this on one particular host (i.e. hardware type)?
- No as I can repro in KVM

-Is there anything in syslog?
- Nothing relevant

Which packages (dpkg -l | grep qemu)
ii  qemu-utils                       2.0.0+dfsg-2ubuntu1.6         amd64        
QEMU utilities

Does a reboot (without installing new packages) fix the problem?
- No

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https://bugs.launchpad.net/bugs/1387881

Title:
  qemu fails to recognize full virtualization

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