2

I can't start KVM since I use dnsmasq on my laptop as a DNS cache server,

enter image description here

So, I'm wondering if this can be merged to the server I'm running.

3

Yes, add

bind-interfaces
except-interface=virbr0

to some file in /etc/dnsmasq.d. (that's what Ubuntu's libvirt-bin package (at least) does automatically now)

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