Description of problem:
Right now, hosted-engine does not support all CPU types for the hypervisors that are supported by the engine.

Engine list:
~~~
SELECT * from vdc_options where option_value like '%Haswel%' and version='3.6';

option_id    | 575
option_name  | ServerCPUList
option_value | 
3:Intel Conroe Family:vmx,nx,model_Conroe:Conroe:x86_64; 
4:Intel Penryn Family:vmx,nx,model_Penryn:Penryn:x86_64; 
5:Intel Nehalem Family:vmx,nx,model_Nehalem:Nehalem:x86_64; 
6:Intel Westmere Family:aes,vmx,nx,model_Westmere:Westmere:x86_64; 
7:Intel SandyBridge Family:vmx,nx,model_SandyBridge:SandyBridge:x86_64; 
8:Intel Haswell-noTSX Family:vmx,nx,model_Haswell-noTSX:Haswell-noTSX:x86_64; 
9:Intel Haswell Family:vmx,nx,model_Haswell:Haswell:x86_64; 
10:Intel Broadwell-noTSX Family:vmx,nx,model_Broadwell-noTSX:Broadwell-noTSX:x86_64; 
11:Intel Broadwell Family:vmx,nx,model_Broadwell:Broadwell:x86_64; 
2:AMD Opteron G1:svm,nx,model_Opteron_G1:Opteron_G1:x86_64; 
3:AMD Opteron G2:svm,nx,model_Opteron_G2:Opteron_G2:x86_64; 
4:AMD Opteron G3:svm,nx,model_Opteron_G3:Opteron_G3:x86_64; 
5:AMD Opteron G4:svm,nx,model_Opteron_G4:Opteron_G4:x86_64; 
6:AMD Opteron G5:svm,nx,model_Opteron_G5:Opteron_G5:x86_64; 
3:IBM POWER8:powernv,model_POWER8:POWER8:ppc64;
version      | 3.6
~~~

Hosted-engine list in ovirt-hosted-engine-setup/vdsmd/cpu.py:
~~~
    # CPU list from ovirt-engine: git grep ServerCPUList | grep 3.5
    CPU_FAMILIES = (
        {'model': 'model_Haswell', 'name': 'Intel Haswell Family'},
        {'model': 'model_SandyBridge', 'name': 'Intel SandyBridge Family'},
        {'model': 'model_Westmere', 'name': 'Intel Westmere Family'},
        {'model': 'model_Nehalem', 'name': 'Intel Nehalem Family'},
        {'model': 'model_Penryn', 'name': 'Intel Penryn Family'},
        {'model': 'model_Conroe', 'name': 'Intel Conroe Family'},
        {'model': 'model_Opteron_G5', 'name': 'AMD Opteron G5'},
        {'model': 'model_Opteron_G4', 'name': 'AMD Opteron G4'},
        {'model': 'model_Opteron_G3', 'name': 'AMD Opteron G3'},
        {'model': 'model_Opteron_G2', 'name': 'AMD Opteron G2'},
        {'model': 'model_Opteron_G1', 'name': 'AMD Opteron G1'},
    )

~~~

Version-Release number of selected component (if applicable):
ovirt-hosted-engine-setup-1.3.3.4-1.el7ev.noarch
3.6.3


What is missing:
3:IBM POWER8:powernv,model_POWER8:POWER8:ppc64;
8:Intel Haswell-noTSX Family:vmx,nx,model_Haswell-noTSX:Haswell-noTSX:x86_64; 
10:Intel Broadwell-noTSX Family:vmx,nx,model_Broadwell-noTSX:Broadwell-noTSX:x86_64; 
11:Intel Broadwell Family:vmx,nx,model_Broadwell:Broadwell:x86_64; 


I believe those need to be added ASAP.