virt-manager on 16.04 as host does not allow creation of 16.04 or 15.10 virtual machines

To reproduce install virt-manager on an installatoin of 16.04 ubuntu xenial and apply the latest updates. Then download another option of ubuntu 16.04 as a guest. The try to attach the iso image of 16.04 and select 16.04 as the vm type in the virt-manager. Then I get a python error that it treis to create a vm and ends up recursorly calling itself in a long time.

rror setting up default devices:maximum recursion depth exceeded while calling a Python object

RuntimeError: maximum recursion depth exceeded while calling a Python object with informatoin about it in an attached file not sure if apport attaches this by itself though.

Description: Ubuntu Xenial Xerus (development branch)
Release: 16.04

virt-manager:
  Installed: 1:1.2.1-4ubuntu1
  Candidate: 1:1.2.1-4ubuntu1
  Version table:
 *** 1:1.2.1-4ubuntu1 500
        500 http://us.archive.ubuntu.com/ubuntu xenial/universe amd64 Packages
        500 http://us.archive.ubuntu.com/ubuntu xenial/universe i386 Packages
        100 /var/lib/dpkg/status
I expected this to allow me to create a vm of xenial on top of my xenial host like I was able to do for many times in wily with virt-manager 1.1.0 even if xenial was not listed as an option. However selecting 15.04 lets me get past the create vm dialog.

ProblemType: Bug
DistroRelease: Ubuntu 16.04
Package: virt-manager 1:1.2.1-4ubuntu1
ProcVersionSignature: Ubuntu 4.3.0-2.11-generic 4.3.0
Uname: Linux 4.3.0-2-generic x86_64
ApportVersion: 2.19.3-0ubuntu2
Architecture: amd64
CurrentDesktop: LXQt
Date: Wed Jan 6 21:46:50 2016
InstallationDate: Installed on 2015-11-28 (40 days ago)
InstallationMedia: Ubuntu-MATE 16.04 LTS "Xenial Xerus" - Alpha amd64 (20151127)
PackageArchitecture: all
SourcePackage: virt-manager
UpgradeStatus: No upgrade log present (probably fresh install)