This can be closed I have found that it has been moved to the /etc/init
/libvirt-bin.conf file instead of the /etc/default/libvirt-bin file

These old file should have been cleaned up  or a modification in them
pointing to the new location would have been nice.

Sorry to waste your time on this....

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libvirt-bin does not read /etc/defaults/libvirt-bin on startup
https://bugs.launchpad.net/bugs/572764
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