Comment 4 for bug 1626166

I just installed yakkety, and got a similar result. All of the cloud-images and maas images have lvm2 already built in, so this would not be seen there.

$ sudo vgcreate localvg
  Command failed with status code 5.

I installed yakkety like this.
#!/bin/bash
virt-install \
--connect qemu:///system \
--virt-type kvm \
--name yakketylvm \
--ram 2048 \
--disk pool=VMs,size=10 \
--graphics vnc \
-l ftp://ftp.utexas.edu/pub/ubuntu/dists/yakkety/main/installer-amd64/ \
--os-variant ubuntu16.04