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16.04 Virtual Machine Manager wont install VM

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When I use Virtual Machine Manager on 16.04 attempting to install a 12.04 distribution with the defaults, I get a halted black screen with pegged CPU usage but no activity.

My groups settings are proper for libvirtd and kvm, though the installer only gave me libvirtd.

I can install from the command line to a local image file in my home directory no problem. The installer runs properly from there, but does not show up in the VM List of Virtual Machine Manager. (No surprises there)

virsh list --allgives a proper empty list.

it looks to me as though libvirtd may not have proper permissions assigned to the folder it is setup in. I am not sure what the setup should be.

I used apt-get to install it.

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