AFAIK the check is not if an image directory exists, but if there's some
virtual machine with this name is defined in libvirt. --dest doesn't
help for this reason...

@Marcus Bointon: please check if there is some .xml file in
/etc/libvirt/qemu/ that looks like having no, or some kind of default
(ubuntu-kvm or similar) name. This would support my theory...

-- 
AttributeError: 'Libvirt' object has no attribute 'vm'
https://bugs.launchpad.net/bugs/562189
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