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The fix for CVE-2016-3712 introduced a regression and we'll have to push a new update.

From the upstream patch:

"""
From: Gerd Hoffmann <kraxel>
Subject: [Qemu-devel] [PATCH] vga: add sr_vbe register set

Commit "fd3c136 vga: make sure vga register setup for vbe stays intact
(CVE-2016-3712)." causes a regression.  The win7 installer is unhappy
because it can't freely modify vga registers any more while in vbe mode.

This patch introduces a new sr_vbe register set.  The vbe_update_vgaregs
will fill sr_vbe[] instead of sr[].  Normal vga register reads and
writes go to sr[].  Any sr register read access happens through a new
sr() helper function which will read from sr_vbe[] with vbe active and
from sr[] otherwise.

This way we can allow guests update sr[] registers as they want, without
allowing them disrupt vbe video modes that way.

Reported-by: Thomas Lamprecht <thomas>
Signed-off-by: Gerd Hoffmann <kraxel>
"""

Fix included in qemu-kvm-rhev-2.6.0-7.el7

Reproduced on 7.3 host with
kernel: 3.10.0-468.el7.x86_64
qemu:qemu-kvm-rhev-2.6.0-6.el7.x86_64

Trying to install win7/win2008r2 guests, results:

iso:en_windows_7_ultimate_with_sp1_x86_dvd_u_677460.iso result: stuck at "starting windows"
iso:en_windows_7_ultimate_with_sp1_x64_dvd_u_677332.iso result: stuck at "starting windows" 
iso:en_windows_server_2008_r2_standard_enterprise_datacenter_and_web_with_sp1_x64_dvd_617601.iso result: stuck at "starting windows" 

Install win10 guests for comparing, win10 guests install and work well, isos used:
en_windows_10_enterprise_x64_dvd_6851151.iso
en_windows_10_enterprise_x86_dvd_6851156.iso

Verify against qemu-kvm-rhev-2.6.0-7.el7.x86_64

Both windows7/win2008r2 guests install and work well.
Install win10 guests for comparing, win10 guests install and work well also.

Move to verified per comment 4

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory, and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

https://rhn.redhat.com/errata/RHBA-2016-2673.html