------- Comment From [email protected] 2018-02-20 11:53 EDT-------
Looks like before installing libvirt the `/var/lib/libvirt/images/` folder got 
created by testbed(jenkins) as the base folder for the slave is configured as 
/var/lib/libvirt/images/,

Just to make sure, I have deleted the complete /var/lib/libvirt folder
and removed libvirt package and reinstalled it back, I could see now the
/var/lib/libvirt images folder permissions are intact

VMs are starting fine now.

#virsh domcapabilities
<domainCapabilities>
<path>/usr/bin/qemu-system-ppc64</path>
<domain>kvm</domain>
<machine>pseries-bionic</machine>
<arch>ppc64le</arch>
<vcpu max='1024'/>
...

# ls -l libvirt
ls: cannot access 'libvirt': No such file or directory

------During libvirt package install
# ls -l libvirt
total 16
drwxr-xr-x 2 root root 4096 Feb  2 01:31 boot
drwxr-xr-x 2 root root 4096 Feb  2 01:31 images
drwxr-xr-x 3 root root 4096 Feb 20 11:34 qemu
drwxr-xr-x 2 root root 4096 Feb  2 01:31 sanlock

# ls -l libvirt
total 16
drwx--x--x 2 root         root         4096 Feb  2 01:31 boot
drwx--x--x 2 root         root         4096 Feb  2 01:31 images
drwxr-x--- 3 libvirt-qemu libvirt-qemu 4096 Feb 20 11:34 qemu
drwx------ 2 root         root         4096 Feb  2 01:31 sanlock

# ls -l libvirt
total 20
drwx--x--x 2 root root 4096 Feb  2 01:31 boot
drwxr-xr-x 2 root root 4096 Feb 20 11:39 dnsmasq
drwx--x--x 2 root root 4096 Feb  2 01:31 images
drwxr-x--- 9 root root 4096 Feb 20 11:38 qemu --------I could see qemu folder 
permissions are getting altered during package install
drwx------ 2 root root 4096 Feb  2 01:31 sanlock

# ls -l
total 20
drwx--x--x 2 root root 4096 Feb  2 01:31 boot
drwxr-xr-x 2 root root 4096 Feb 20 11:39 dnsmasq
drwx--x--x 2 root root 4096 Feb  2 01:31 images
drwxr-x--- 9 root root 4096 Feb 20 11:38 qemu
drwx------ 2 root root 4096 Feb  2 01:31 sanlock

I hope this should be fine?

Regards,
-Satheesh

** Tags added: bugnameltc-164807 severity-critical

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https://bugs.launchpad.net/bugs/1750543

Title:
  [power9][Ubuntu 18.04][4.15.0-10-generic][libvirt-bin-4.0.0-1ubuntu2]
  KVM guest unable start from libvirt "could not find capabilities for
  arch=ppc64le " (kvm)

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