Sadly, no solution was found so I decided to cold boot and move on.

I tried to boot with a number of command line options to no avail.
    dis_ucode_ldr
    mitigations=off
    kvm-intel.nested=1
If anyone knows a way to resume this image, reply to this thread.
I kept a copy of the paused image and can try again, for next time this happens 
to me.

TIA,
    Eyal

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