Something in a recent dnsmasq update broke KVM. I hit the same and found
a workaround that gets me rolling again wtih KVM guests at least....
here's a quick shell summary:

bladernr@galactica:~$ sudo virsh net-start default
error: Failed to start network default
error: internal error: Child process (VIR_BRIDGE_NAME=virbr0 /usr/sbin/dnsmasq 
--conf-file=/var/lib/libvirt/dnsmasq/default.conf --leasefile-ro 
--dhcp-script=/usr/lib/libvirt/libvirt_leaseshelper) unexpected exit status 2: 
dnsmasq: failed to create listening socket for 192.168.123.1: Address already 
in use

bladernr@galactica:~$ sudo virsh net-list
 Name   State   Autostart   Persistent
----------------------------------------

bladernr@galactica:~$ sudo apt-cache policy dnsmasq-base
dnsmasq-base:
  Installed: 2.90-0ubuntu0.23.10.1
  Candidate: 2.90-0ubuntu0.23.10.1
  Version table:
 *** 2.90-0ubuntu0.23.10.1 500
        500 http://archive.ubuntu.com/ubuntu mantic-updates/main amd64 Packages
        500 http://security.ubuntu.com/ubuntu mantic-security/main amd64 
Packages
        100 /var/lib/dpkg/status
     2.89-1 500
        500 http://archive.ubuntu.com/ubuntu mantic/main amd64 Packages

bladernr@galactica:~$ sudo apt install dnsmasq-base=2.89-1
bladernr@galactica:~$ sudo virsh net-start default
Network default started

bladernr@galactica:~$ sudo virsh net-list
 Name      State    Autostart   Persistent
--------------------------------------------
 default   active   yes         yes

as you can see, as a workaround, reverting to the original Mantic
version allows the NAT network to start and I can once again launch KVM
guests on my machine.

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https://bugs.launchpad.net/bugs/2055776

Title:
  After updating ubuntu, the network to which the subnet address is
  assigned does not become active in KVM.

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