This appears to be a known issue with qemu:
https://lists.gnu.org/archive/html/qemu-ppc/2016-04/msg00046.html. I
don't see a fix yet upstream, but will ping Anton offline to see if a
resubmit is planned.

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https://bugs.launchpad.net/bugs/1570119

Title:
  xenial ppc64le cloud image crashes on nested virt

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