It looks like this is related to the discussion of vhost_net, packet checksumming and DHCP @ http://www.spinics.net/lists/kvm/msg37660.html and recent changes to libvirt that enable 'vhost=on' by default for KVM processes (vhost=on does not get set by default on precise)
Using iptables on the host with 'vhost=on' to workaround fixes the issue:
It looks like this is related to the discussion of vhost_net, packet checksumming and DHCP @ http:// www.spinics. net/lists/ kvm/msg37660. html and recent changes to libvirt that enable 'vhost=on' by default for KVM processes (vhost=on does not get set by default on precise)
Using iptables on the host with 'vhost=on' to workaround fixes the issue:
iptables -A POSTROUTING -t mangle -p udp --dport 68 -j CHECKSUM --checksum-fill
Also, disabled vhost explicitly in instance's libvirt.xml does as well, by setting
<driver name='qemu'/> in the <interface> section of the domain's configuration.