Quoting Gannet ([email protected]):
> >You say you updated from 1.2.11 (from a ppa version) - could you tell us 
> >which ppa that came from?
> This PPA: ppa:jacob/virtualisation
> 
> >Does /dev/vhost-net exist? If not, does 'modprobe vhost_net' solve this 
> >problem?
> No, it doesn't exist. Yes, 'modprobe vhost_net' solve this. But VM still 
> fails to start with the same message.

Yeah sorry by 'solve this problem' I meant the whole problem.

Could you upload your current /var/log/libvirt/libvirtd.log (or just the 
messages
since Feb 8)?

I looked through the source from the ppa you're using, it doesn't appear to
have any new patches or features enabled, so I don't think that is the cause
of this bug...  Were you using that ppa to get newer libvirt versions?

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https://bugs.launchpad.net/bugs/1419564

Title:
  VM fails to start: Launch helper exited with unknown return code 1

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