Comment 8 for bug 1532007

vsandhya, it appears the bugproxy is broken, this is marked as a duplicate of 1524737 which was changed to 'fix released' on 2015-12-28.

Checking the Xenial libvirt package shows that the AppArmor rules have been updated for systemd's new path:
$ grep -r huge debian/apparmor/
debian/apparmor/libvirt-lxc: # allow hugetlbfs mounts everywhere
debian/apparmor/libvirt-lxc: mount fstype=hugetlbfs,
debian/apparmor/libvirt-qemu: # for access to hugepages
debian/apparmor/libvirt-qemu: owner "/run/hugepages/kvm/libvirt/qemu/**" rw,
debian/apparmor/libvirt-qemu: owner "/dev/hugepages/libvirt/qemu/**" rw,

If you're still seeing errors please open a new bug. Thanks.