I've been struggling with this for nearly 2 hours before I realized that
I was running a virtualbox vm in headless mode.  Was trying to create a
qemu-kvm vm and it kept failing with symptoms similar to those reported
here.

What would be good is getting qemu-kvm to at least check if another
hypervisor is currently running, then allude that fact to the moronic
end-user and save the sucker from wasting 2 hours on a Saturday
afternoon chasing his tail!

This is the error I was getting:
==========================

[Sat, 26 Mar 2016 15:47:21 virt-manager 490] DEBUG (error:84) error dialog 
message:
summary=Unable to complete install: 'internal error: process exited while 
connecting to monitor: ioctl(KVM_CREATE_VM) failed: 16 Device or resource busy
failed to initialize KVM: Device or resource busy
'
details=Unable to complete install: 'internal error: process exited while 
connecting to monitor: ioctl(KVM_CREATE_VM) failed: 16 Device or resource busy
failed to initialize KVM: Device or resource busy
'

Traceback (most recent call last):
  File "/usr/share/virt-manager/virtManager/asyncjob.py", line 91, in cb_wrapper
    callback(asyncjob, *args, **kwargs)
  File "/usr/share/virt-manager/virtManager/create.py", line 1819, in do_install
    guest.start_install(meter=meter)
  File "/usr/share/virt-manager/virtinst/guest.py", line 403, in start_install
    noboot)
  File "/usr/share/virt-manager/virtinst/guest.py", line 467, in _create_guest
    dom = self.conn.createLinux(start_xml or final_xml, 0)
  File "/usr/lib/python2.7/dist-packages/libvirt.py", line 3497, in createLinux
    if ret is None:raise libvirtError('virDomainCreateLinux() failed', 
conn=self)
libvirtError: internal error: process exited while connecting to monitor: 
ioctl(KVM_CREATE_VM) failed: 16 Device or resource busy
failed to initialize KVM: Device or resource busy

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https://bugs.launchpad.net/bugs/1393842

Title:
  libvirt does not grant qemu-guest-agent channel perms

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