Soo, after some digging I found the root cause, while those two KVM patches 
listed above were backported/added another on was not, namely:
81b1b9ca6d5ca5f3ce91c0095402def657cf5db3
KVM: VMX: Fix host initiated access to guest MSR_TSC_AUX

I backported it to this Ubuntu-4.2.0-30.35 kernel and tested it
successfully.


** Patch added: 
"0001-KVM-VMX-Fix-host-initiated-access-to-guest-MSR_TSC_A.patch"
   
https://bugs.launchpad.net/ubuntu/+source/linux/+bug/1540532/+attachment/4581866/+files/0001-KVM-VMX-Fix-host-initiated-access-to-guest-MSR_TSC_A.patch

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https://bugs.launchpad.net/bugs/1540532

Title:
  Wily update to v4.2.8-ckt3 stable release

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