Sunbeam VM launch fails

We are attempting get Openstack KVM hypervisor up and running but we run into problems when we attempt to launch the instance. We have tried this on two different machines, no avail.

We also filed a ticket with Ubuntu: Bug #2046980 “Sunbeam VM launch fails” : Bugs : Canonical SSO provider

We are cross posting here hoping to get some pointers.

I found a discussion on this forum with similar failure signature in this thread: Sunbeam provisions OpenStack but can't run any image - #4 by james-page

Brian G. Rodiles Delgado also reported the same problem we have encountered in the above thread.

Hope someone can chime in.