Comment 23 for bug 1673467

I hit this problem with yakkety-newton as well today, seems nested kvm doesn't work on yakkety (mitaka doesn't have this problem), it said:

2017-04-11 12:12:21.047 19019 ERROR nova.compute.manager [instance: 4912dc24-fb89-4b83-9b59-d139547b7c28] libvirtError: invalid argument: could not find capabilities for domaintype=kvm

root@juju-5e1208-basic-yakkety-newton-7:~# kvm-ok
INFO: /dev/kvm does not exist
HINT: sudo modprobe kvm_intel
INFO: Your CPU supports KVM extensions
KVM acceleration can be used

root@juju-5e1208-basic-yakkety-newton-7:~# modprobe kvm_intel
modprobe: ERROR: could not insert 'kvm_intel': Input/output error

then cause we see openstack's errors above, more info can refer the link http://paste.ubuntu.com/24364083/