After going the wrong direction for a while I see the almost hidden, yet so important words - "in nested only" ! That also explains the kvm-pr I wondered about, as I'd have expected kvm-hv if in 1st level.
I tried as you instructed - on first stage it worked (Host to lvl 1) Command: $virt-install --virt-type=kvm --cpu=host --name=nested-xenial --controller type=scsi,model=virtio-scsi --graphics none --console pty,target_type=serial --disk path=/home/ubuntu/cpaelzer/test-xenial-virt-inst.qcow2,size=20 --vcpus=4 --ram=4096 --os-type=linux --os-variant ubuntu16.04 --network bridge=virbr0,model=virtio --cdrom=ubuntu-16.04-server-ppc64el.iso On a Xenial system with: ii libvirt-bin 1.3.1-1ubuntu10.6 ii qemu-kvm 1:2.5+dfsg-5ubuntu10.6 ii virtinst 1:1.3.2-3ubuntu1.16.04.3 And HW: POWER8E - PowerNV 8247-22L Now the same in 2nd level: 1. install all packages for kvm 2. ensure kvm_pr is loaded correctly 3. make sure libvirt default network can start in 2nd level 3. wget http://cdimage.ubuntu.com/releases/xenial/release/ubuntu-16.04-server-ppc64el.iso 4. virt-install as above, yet shrinked down to fit (5G disk) With that I can confirm your issue. ** Changed in: qemu (Ubuntu) Status: New => Confirmed -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/1660946 Title: [nested] virt-install falls to SLOF To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/qemu/+bug/1660946/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs