I also tested xenial GA kernel:

sid ➜  ~  sudo uname -a
Linux sid 4.4.0-89-generic #112~lp1709784 SMP Thu Aug 10 19:39:43 UTC 2017 
ppc64le ppc64le ppc64le GNU/Linux

sid ➜  ~  sudo virsh list
 Id    Name                           State
----------------------------------------------------
 2     debian                         running
 3     1604                           running
 4     unstable                       running

sid ➜  ~  sudo virsh console 1604
Connected to domain 1604
Escape character is ^]

Ubuntu 16.04.3 LTS 1604 hvc0

1604 login:

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https://bugs.launchpad.net/bugs/1709784

Title:
  KVM on 16.04.3 throws an error

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