Description of problem:

After updating selinux-policy and selinux-policy-targeted to latest Fedora 24 versions it is no longer possible to start a local KVM VM when SELinux is in enforcing mode.

Version-Release number of selected component (if applicable):

Aug 21 16:19:06 INFO Upgraded: selinux-policy-3.13.1-191.12.fc24.noarch
Aug 21 16:19:28 INFO Upgraded: selinux-policy-targeted-3.13.1-191.12.fc24.noarch

How reproducible:

Update to named selinux-policy and selinux-policy-targeted versions and try to start a KVM VM on your local system while SELinux is enforced.

Steps to Reproduce:
1. Update to named SELinux packages
2. Open virt-manager and connect to local system
3. Try to start an existing VM

Actual results:

Error popup with following details:

Fehler beim Starten der Domain: SELinux policy denies access.

Traceback (most recent call last):
  File "/usr/share/virt-manager/virtManager/asyncjob.py", line 88, in cb_wrapper
    callback(asyncjob, *args, **kwargs)
  File "/usr/share/virt-manager/virtManager/asyncjob.py", line 124, in tmpcb
    callback(*args, **kwargs)
  File "/usr/share/virt-manager/virtManager/libvirtobject.py", line 83, in newfn
    ret = fn(self, *args, **kwargs)
  File "/usr/share/virt-manager/virtManager/domain.py", line 1404, in startup
    self._backend.create()
  File "/usr/lib64/python2.7/site-packages/libvirt.py", line 1035, in create
    if ret == -1: raise libvirtError ('virDomainCreate() failed', dom=self)
libvirtError: SELinux policy denies access.

AVC logging of:

type=USER_AVC msg=audit(1471857718.238:319): pid=1 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:init_t:s0 msg='avc:  denied  { start } for auid=n/a uid=0 gid=0 cmdline="/usr/lib/systemd/systemd-machined" scontext=system_u:system_r:systemd_machined_t:s0 tcontext=system_u:system_r:init_t:s0 tclass=system  exe="/usr/lib/systemd/systemd" sauid=0 hostname=? addr=? terminal=?'

Expected results:

KVM VM gets started.

Additional info:

No such problem prior to updating to latest selinux-policy and selinux-policy-targeted.