FYI

We fixed it by making the following change:

'''
--- /lib/systemd/system/libvirt-bin.service.bak 2017-05-15 10:21:10.832503252 
+0000
+++ /lib/systemd/system/libvirt-bin.service     2017-05-15 10:22:24.631689012 
+0000
@@ -20,6 +20,8 @@
 LimitNOFILE=infinity
 LimitNPROC=infinity
 TasksMax=infinity
+Type=forking
+PIDFile=/var/run/libvirtd.pid

 [Install]
 Alias=libvirtd.service
'''


pkill libvirtd
systemctl daemon-reload
service libvirtd restart

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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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