Oh. I remember having seen this before. The problem, I think was related to 
nova-compute which added back the -d option back to /etc/default/libvirt-bin. 
However when being started via systemd the libvirtd process must not daemonize 
itself. So basically, you need to remove the -d option from the default options 
manually.
One can see this in the status output where systemd claims the service to be 
dead but there is a libvirtd daemon running but not with the initial PID. 
Somehow I thought this had been fixed though it might be possible that the fix 
only does not add it again but if someone already got the change it is not 
rolled back. Or when installing the new libvirt there were changes in the 
config and the installer was told to keep the current (old) config.

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https://bugs.launchpad.net/bugs/1560939

Title:
  libvirt-bin fails to install on a fresh xenial server

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