Relevant quote from libvirt debug log:

2016-01-07 03:30:49.042+0000: 1177: info : virDBusCall:1548 : DBUS_METHOD_CALL: 
'org.freedesktop.machine1.Manager.CreateMachineWithNetwork' on 
'/org/freedesktop/machine1' at 'org.freedesktop.machine1'
2016-01-07 03:30:49.088+0000: 1177: info : virDBusCall:1558 : 
DBUS_METHOD_ERROR: 'org.freedesktop.machine1.Manager.CreateMachineWithNetwork' 
on '/org/freedesktop/machine1' at 'org.freedesktop.machine1' error 
org.freedesktop.DBus.Error.PropertyReadOnly: Cannot set property Before, or 
unknown property.
2016-01-07 03:30:49.088+0000: 1177: error : virSystemdCreateMachine:291 : 
Cannot set property Before, or unknown property.

** Attachment added: "libvirtd debug log"
   
https://bugs.launchpad.net/ubuntu/+source/libvirt/+bug/1529079/+attachment/4545340/+files/libvirtd%20debug%20log

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https://bugs.launchpad.net/bugs/1529079

Title:
  Can't start virtual machines after upgrade to Xenial

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