Just found this bug, I had added a similar bug ticket:
https://bugs.launchpad.net/ubuntu/+source/linux-raspi2/+bug/1849369 (now
marked as duplicate).

Copy paste from above:

Using the official Ubuntu 19.10 arm64 image,
http://cdimage.ubuntu.com/ubuntu/releases/19.10/release/ubuntu-19.10
-preinstalled-server-arm64+raspi3.img.xz, with the 5.3.x Linux kernel
has KVM/VIRTUALIZATION disabled by default and therefore /dev/kvm
acceleration is not available on installations on newer Raspberry Pi 4
(for example) which has a supported processor (armv8) by KVM
(https://www.linux-kvm.org/page/Processor_support#ARM:).

I'm able to compile the kernel manually with the options enabled in the
kernel config (http://dl.rohityadav.cloud/cloudstack-rpi/kernel-19.10/)
and further verify that it works well in deploying ARM64 VMs
(http://dl.rohityadav.cloud/cloudstack-rpi/template/). I went a bit
further to deploy an Apache CloudStack based IaaS deployment and verify
that it works as well. Having KVM enabled arm64 devices would enable
testing and misc use-cases on newer boards such as the Raspberry Pi 4 (4
GB RAM).

Can the Ubuntu kernel team advise why KVM is not enabled in the kernel
by default, and if this will change in future? Thanks.

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https://bugs.launchpad.net/bugs/1783961

Title:
  CONFIG_KVM is disabled for linux-raspi2 (aarch64)

Status in linux-raspi2 package in Ubuntu:
  Confirmed

Bug description:
  In contrast to the Linux kernel for x86_64, the CONFIG_KVM option is disabled 
for the "linux-raspi2" kernel (version 4.15.0-1016-raspi2 aarch64) on Ubuntu 
18.04.
  This prevents running QEMU with the -enable-kvm option to use hardware 
virtualization capabilities of the CPU.

  I have recompiled the kernel with CONFIG_KVM set and could successfully run 
QEMU with -enable-kvm on my Raspberry Pi 3 B+ afterwards.
  In my opinion, there is no reason for not activating CONFIG_KVM in the 
official raspi2 kernel.

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