I think this has been fixed by this commit here:
https://git.qemu.org/?p=qemu.git;a=commitdiff;h=d139e9a6cf01b8c31f59
... so closing this ticket now.
** Changed in: qemu
Status: New => Fix Released
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https://bugs.launchpad.net/bugs/838974
Title:
Confusing error report for missing vde support
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