Can you also confirm this with an Ubuntu based v4.8-rc6 kernel
(currently available in yakkety-proposed)

Based on the bug description, it appears this is a regression which
originates from upstream and was introduced in 4.8-rc2:

linux$ git describe --contains 5958d19a143eb229e9ece20bd4c781ad41cb7d24

Upstream is now at v4.8-rc7.  If the issue remains, please report this
upstream as well.

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  Ubuntu 16.10 KVM: kernel 4.8 can not enable SRIOV for power systems

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