Comment 1 for bug 1890005

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Christian Ehrhardt  (paelzer) wrote : Re: can't complete the installation : internal error : libxenlight failed to create new domain

The defaults of virt-manager for xen are not 100% compatible for Ubuntu's Xen.
I've shown that when discussing about the last bug in my example how to get it working I mentioned how to adapt (c) of your list above.

Get this fixed by:
1. Install the qemu build you need for yen
  apt install qemu-system-x86-xen
2a. set the emulator path to /usr/bin/qemu-system-i386
OR
2b. link the expected to the real path (avoids that you'd need to do this for every domain)
sudo ln -s /usr/bin/qemu-system-i386 /usr/lib/xen-4.11/bin/qemu-system-i386

One would either need to move the xen default paths in src:xen or teach virt-manager about better defaults. This moved around so much for xen I'm even unsure which component sets the wrong default.
Was at /usr/lib/xen/bin/qemu-dm, /usr/libexec/qemu-kvm, /usr/lib/xen-$(ver)/bin/qemu-system-i386 ...

Since it is listed in the capabilities probing result I'd even expect virt-manager gets it from libvirt - to libvirt might be the right source package of this after all. But since xen was demoted that is low prio - happy to help thou if someone of the community steps up providing a fix after debugging where the probe results gets the wrong path.