Yes, your understanding is correct, the initial issue got rectified by
removing cache and removing the local qemu instance compiled with
qemu-2.7.

Looks like the PATH precedence is local bydefault and it can be inconsistent, so
different utilities takes inconsistent values in this case, like virt-install 
complains about
unsupported cpu.

Keeping the absolute binary path in kvm wrapper will make that it always
points to the system installed binary and if user wants to use his
binary anyways can change wrapper "or" use it standalone?, which other
distributions also follow.

In that way we would have inconsistent virsh capabilities output even
the custom binaries installed in the system

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https://bugs.launchpad.net/bugs/1628101

Title:
  qemu-kvm: virt-install VM fails due to inconsistent virsh capabilities
  output due to multiple qemu instance

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