For my systems I found the reason: libvirtd_opts in /etc/default
/libvirt-bin was set to "-d", which instructs libvirtd to fork into
background. But the systemd service did not expect a fork (type=notify).
This was the reason that systemd fails to restart the service. I believe
it was the default in older systems. I did not verify that.

Check you /etc/default/libvirt-bin, remove the -d and libvirtd acts fine
with systemd.

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https://bugs.launchpad.net/bugs/1594902

Title:
  Failed to upgrade to libvirt-bin 1.3.1-1ubuntu10.1 on Ubuntu 16.04
  64-bit

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