You say:
  > What version of libvirt is running in your lvl1 (or all levels)?

cf my 1st post and below:

On my Ubuntu16.04 bare metal host:
    ```
    libvirt-bin      4.0.0-1ubuntu8.5~cloud0
    qemu-system-x86  1:2.11+dfsg-1ubuntu7.6~cloud0
    ```

On one Ubuntu16.04 lvl1 VM:
    ```
    libvirt-bin      4.0.0-1ubuntu8.3~cloud0
    qemu-system-x86  1:2.11+dfsg-1ubuntu7.4~cloud0
    ```
.
.
.
.
You say:
  > - [can you] reproduce the same on a different host CPU

If I can I will try, on a much 'smaller' device (not a Xeon CPU).
Maybe tomorow.
.
.
.
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You say:
  > To confirm our current theory that the usage/emulation/nesting of invpcid 
  is the root cause [...]

Dumpxml of my lvl2 VM with "<feature policy='disable' name='invpcid'/>":
https://paste.ubuntu.com/p/WxvfBcHnF2/

And here is the boot log of the lvl2 VM with invpcid disabled:
The VM failed to boot. Maybe I missed sth.
https://paste.ubuntu.com/p/bkqDsT8VTy/

I followed [1]:
[1] https://youth2009.org/post/kvm-with-ubuntu-cloud-image/
.
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you say:
  > NB-reply: there was no --os-variant 18.04 released back then

No big deal, it is just frustrating to instantiate an Ubuntu18.04 and to set 
this parameter to something else !
.
.
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You say:
  > x86 nested virt is never really supported, just "as good as it happens to 
work". I wonder if that is one of those cases.

First I thought nested virt could make my life easier regarding what I wanted
to achieve. There are several ways of testing and deploying OpenStack.
With the way I chose, I could 'simulate' a multi-hosts environment like in [2] 
with several compute nodes, etc...

[2] https://github.com/nuagenetworks/nuage-openstack-ansible/wiki
/Configure-OSA-Multi-node-Environment

But now I understand that nested virt is maybe too much a beta.
I will try with "Ubuntu 18.04 > Ubuntu 16/18 > {whatever OS}".
Maybe this is patched in Ubuntu18.04.
And if it does not suit my needs, I will figure out something else (and more 
bare metal ^^). 

Metal as a Service (Ubuntu MAAS) looks good, but it is too much for me.
.
.
.
.
TY for your help. I think this bug is hard to identify and maybe harder to
patch. And I am not a virtualization or qemu or OpenStack expert 
(for the moment !?). So I can't help you more.

-- 
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Bugs, which is subscribed to Ubuntu.
https://bugs.launchpad.net/bugs/1797332

Title:
  qemu nested virtualization is not working with Ubuntu16.04 + Intel CPU

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