Bug 1147662

I can confirm this error with choosing Raring ubuntu in the linux version dropdown and a centOS 7 host.

virt-manager 1.1.0

After leaving the linux version blank the new vm started, and the remove console worked as expected

I can also reproduce this issue on rhel7，so i will clone it to rhel7.
Host build:
Rhel7.1 snapshot1: http://download.englab.nay.redhat.com/pub/rhel/rel-eng/RHEL-7.1-20141217.0/compose/Server/x86_64/os/

Related packages version:
virt-manager-1.1.0-10.el7.noarch
virt-install-1.1.0-10.el7.noarch
libvirt-1.2.8-11.el7.x86_64
qemu-kvm-rhev-2.1.2-17.el7.x86_64

Steps:
1. Launch virt-manager, then create a new vm via iso image.
   Use ubuntu guest iso:  ubuntu-12.10-server-amd64.iso &ubuntu-13.04-server-amd64.iso
2. Use default settings, click "Forward" step by step, at last click "Finish" and begin to install guest.

3. Virt-manager show following error
...
Unable to complete install: 'internal error: process exited while connecting to monitor: Error: VMWare SVGA not available
'

Traceback (most recent call last):
  File "/usr/share/virt-manager/virtManager/asyncjob.py", line 89, in cb_wrapper
    callback(asyncjob, *args, **kwargs)
  File "/usr/share/virt-manager/virtManager/create.py", line 1855, in do_install
    guest.start_install(meter=meter)
  File "/usr/share/virt-manager/virtinst/guest.py", line 411, in start_install
    noboot)
  File "/usr/share/virt-manager/virtinst/guest.py", line 475, in _create_guest
    dom = self.conn.createLinustart_xml or final_xml, 0)
  File "/usr/lib64/python2.7/site-packages/libvirt.py", line 3398, in createLinux
    if ret is None:raise libvirtError('virDomainCreateLinu) failed', conn=self)
libvirtError: internal error: process exited while connecting to monitor: Error: VMWare SVGA not available

More information:

Do another test and check if
> ubuntu-12.10-server-amd64.iso works when selecting VGA and that

Result: Works with VGA driver, installation finished successfully.
...
    <video>
      <model type='vga' vram='16384' heads='1'/>
      <alias name='video0'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x02' function='0x0'/>
    </video>
...


> ubuntu-13.04-server-amd64.iso works when selecting QXL?
Result: Installation will succeed after custom spice+qxl by hand before installation.
...
    <graphics type='spice' port='5901' autoport='yes' listen='127.0.0.1'>
      <listen type='address' address='127.0.0.1'/>
    </graphics>
...
    <video>
      <model type='qxl' ram='65536' vram='65536' vgamem='8192' heads='1'/>
      <alias name='video0'/>
      <address type='pci' domain='0x0000' bus='0x00' slot='0x02' function='0x0'/>
    </video>

...

Thanks for the report, fixed upstream:

commit 7866e291f690d4c5c9cd7e3c667f27f9bf935b34
Author: Cole Robinson <crobinso>
Date:   Wed Mar 25 09:04:51 2015 -0400

    guest: Never use vmvga if host is RHEL (bz 1147662)

virt-manager-1.1.0-6.git8ca8490c.fc22 has been submitted as an update for Fedora 22.
https://admin.fedoraproject.org/updates/virt-manager-1.1.0-6.git8ca8490c.fc22

Package virt-manager-1.1.0-6.git8ca8490c.fc22:
* should fix your issue,
* was pushed to the Fedora 22 testing repository,
* should be available at your local mirror within two days.
Update it with:
# su -c 'yum update --enablerepo=updates-testing virt-manager-1.1.0-6.git8ca8490c.fc22'
as soon as you are able to.
Please go to the following url:
https://admin.fedoraproject.org/updates/FEDORA-2015-4975/virt-manager-1.1.0-6.git8ca8490c.fc22
then log in and leave karma (feedback).

virt-manager-1.1.0-6.git8ca8490c.fc22 has been pushed to the Fedora 22 stable repository.  If problems still persist, please make note of it in this bug report.