Comment 1 for bug 1618473

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Alexei Sheplyakov (asheplyakov) wrote : Re: It is not possible to boot Ubuntu 16.04 xenial on hardware host with Ubuntu 14.04

Looks like Fuel misconfigures nova-compute so it reports wrong CPU capabilites (and the newer kernel tries to make use of them and Oopses).

Could you please try reproducing the problem with Ubuntu 14.04 *guest* running 4.4.0-x kernel?
Also what happens if you downgrade the kernel in xenial?