So I have now tested installing upstream kernel (4.18-rc6), which worked
and made the procedure successful on 16.04. The system however became
quite unstable as a whole and so I upgraded the system to 18.04 with
it´s stock kernel 4.15-something, which also works. That means it´s
definitely something wrong with 16.04 kernel and not something local to
the system.

/K

** Changed in: linux (Ubuntu)
       Status: Incomplete => Confirmed

** Tags added: kernel-fixed-upstream

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https://bugs.launchpad.net/bugs/1783952

Title:
  Xubuntu 16.04 L0 hypervisor kernel panics L1 CentOS 7.5.1804 guest

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