Doesn't seem to be in - kvm device still there:

ubuntu@ubu-vm-01:~$ uname -a
Linux ubu-vm-01 4.10.0-041000rc1-generic #201612252031 SMP Mon Dec 26 02:37:39 
UTC 2016 s390x s390x s390x GNU/Linux
ubuntu@ubu-vm-01:~$ kvm-ok 
INFO: /dev/kvm exists
KVM acceleration can be used
ubuntu@ubu-vm-01:~$ ls -la /dev/kvm
crw------- 1 root root 10, 232 Mar 20 07:34 /dev/kvm

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https://bugs.launchpad.net/bugs/1735420

Title:
  Avoid creation of /dev/kvm in Xenial KVM virtual machines on s390x

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