virtio guest nics doesn't have network connectivity

Before the update to this version of the kernel the VM's could recieve DHCP and contact the network.
Once I updated the server to 4.4.0-66 my guest VM's cannot communicate with the network.

ProblemType: Bug
DistroRelease: Ubuntu 16.04
Package: linux-image-4.4.0-66-generic 4.4.0-66.87
ProcVersionSignature: Ubuntu 4.4.0-66.87-generic 4.4.44
Uname: Linux 4.4.0-66-generic x86_64
AlsaDevices:
 total 0
 crw-rw----+ 1 root audio 116, 1 Mar 21 11:36 seq
 crw-rw----+ 1 root audio 116, 33 Mar 21 11:36 timer
AplayDevices: Error: [Errno 2] No such file or directory: 'aplay'
ApportVersion: 2.20.1-0ubuntu2.5
Architecture: amd64
ArecordDevices: Error: [Errno 2] No such file or directory: 'arecord'
AudioDevicesInUse: Error: command ['fuser', '-v', '/dev/snd/seq', '/dev/snd/timer'] failed with exit code 1:
Date: Tue Mar 21 11:39:57 2017
HibernationDevice: RESUME=UUID=a7f50198-2eb8-48c6-8051-06bce803d426
InstallationDate: Installed on 2017-02-15 (33 days ago)
InstallationMedia: Ubuntu-Server 16.04.1 LTS "Xenial Xerus" - Release amd64 (20160719)
IwConfig: Error: [Errno 2] No such file or directory: 'iwconfig'
Lsusb:
 Bus 002 Device 001: ID 1d6b:0003 Linux Foundation 3.0 root hub
 Bus 001 Device 003: ID 0624:0249 Avocent Corp. Virtual Keyboard/Mouse
 Bus 001 Device 002: ID 413c:a001 Dell Computer Corp. Hub
 Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
MachineType: Dell Inc. PowerEdge R230
PciMultimedia:

ProcFB: 0 VESA VGA
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-4.4.0-66-generic root=UUID=a86fd17c-b858-4b47-8e9f-6059eda9c38c ro
RelatedPackageVersions:
 linux-restricted-modules-4.4.0-66-generic N/A
 linux-backports-modules-4.4.0-66-generic N/A
 linux-firmware 1.157.8
RfKill: Error: [Errno 2] No such file or directory: 'rfkill'
SourcePackage: linux
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 03/28/2016
dmi.bios.vendor: Dell Inc.
dmi.bios.version: 1.3.2
dmi.board.name: 0MFXTY
dmi.board.vendor: Dell Inc.
dmi.board.version: A01
dmi.chassis.type: 23
dmi.chassis.vendor: Dell Inc.
dmi.modalias: dmi:bvnDellInc.:bvr1.3.2:bd03/28/2016:svnDellInc.:pnPowerEdgeR230:pvr:rvnDellInc.:rn0MFXTY:rvrA01:cvnDellInc.:ct23:cvr:
dmi.product.name: PowerEdge R230
dmi.sys.vendor: Dell Inc.