Description of problem:

Recent update have broken VMs from running.

Looks like maybe a systemd update caused this issue.

Tested on a machine without the systemd update 229-13.fc24 and it works as soon as I update it is broken.

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

Up to date

How reproducible:

Everytime

Steps to Reproduce:
1. Via Virt Manager start a KVM libvirt VM
2. Fails with a error 
3. Try with virtsh
4. Fails

Actual results:

virsh # create /etc/libvirt/qemu/centos7.0.xml 
error: Failed to create domain from /etc/libvirt/qemu/centos7.0.xml
error: SELinux policy denies access.


Expected results:

VM starts

Additional info:

In logs:

Aug 24 17:09:23 wks537630 nm-dispatcher[3267]: req:1 'up' [vnet0]: start running ordered scripts...
Aug 24 17:09:23 wks537630 systemd-machined[2244]: Failed to start machine scope: Access denied
Aug 24 17:09:23 wks537630 libvirtd[898]: SELinux policy denies access.
Aug 24 17:09:23 wks537630 virtlogd[2228]: End of file while reading data: Input/output error
Aug 24 17:09:23 wks537630 virtlogd[2228]: Cannot open log file: '/var/log/libvirt/qemu/centos7.0.log': Device or resource busy
Aug 24 17:09:23 wks537630 libvirtd[898]: Cannot open log file: '/var/log/libvirt/qemu/centos7.0.log': Device or resource busy
Aug 24 17:09:23 wks537630 virtlogd[2228]: End of file while reading data: Input/output error
Aug 24 17:09:23 wks537630 audit[898]: VIRT_CONTROL pid=898 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:virtd_t:s0-s0:c0.c1023 msg='virt=kvm op=start reason=booted vm="centos7.0" uuid=807f3763-ab6b-46f8-804e-486d8de15437 vm-pid=-1 exe="/usr/sbin/libvirtd" hostname=? addr=? terminal=? res=failed'