Comparing to mine I only found one line to be different:

  linux.kernel_modules: openvswitch,nbd,ip_tables,ip6_tables,kvm

So you might add "kvm" to yours there.

The dev should look like this in host and container:
crw-rw---- 1 root kvm 10, 232 Okt 29 22:45 /dev/kvm

Does it look the same for you?

Are there any apparmor denies in dmesg while you start the guest?

I read you are using Eoan/Train container, what is your Host. I've used
18.04 with 4.15.0-62-generic in my check to recreate, but things worked
for me.

Please check the above, if it does't help provide a dmesg.
As we assume /dev/kvm fails to open lets ensure that by running:
 $ strace -ff -rT qemu-system-s390x -enable-kvm -nographic -nodefaults

** Changed in: qemu-kvm (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/1850530

Title:
  qemu-system-s390x permission denied in container on Eoan

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