Created attachment 1246237 [details]
ovirt-hosted-engine-setup log

Description of problem:

The hosted-engine-setup fails with message 'Hosted Engine deployment failed: this system is not reliable, please check the issue,fix and redeploy', when using rhv-hypervisor 4.0-0.20170104.0+1 running on HP ProLiant BL465c G7. Checking the VDSM logs, looks like the failure was caused by QEMU-KVM error: 

qemu-kvm: can't apply global Opteron_G4-x86_64-cpu.x1apic=off: Property '.x1apic' not found

This behavior is similar (if not the same) as described at BZ# 1405123 (https://bugzilla.redhat.com/show_bug.cgi?id=1405123).

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

rhv-hypervisor 4.0-0.20170104.0+1
hosted-engine-appliance 20161214.0-1

How reproducible:

Easy.

Steps to Reproduce:
1. Install RHVH version 4.0-0.20170104.0+1
2. Using cockpit, deploy the hosted-engine.

Actual results:

The setup fails with message 'Hosted Engine deployment failed: this system is not reliable, please check the issue,fix and redeploy'.

Expected results:

The setup completes without erros.