. As you can see below, libnss-libvirt is installed and configured, but the VM "KVM-Ubuntu-GNS3-Server-17.04" is not reachable through its DNS name.
...
# systemctl status libvirtd
● libvirtd.service - Virtualization daemon
Loaded: loaded (/lib/systemd/system/libvirtd.service; enabled; vendor preset: enabled)
Active: active (running) since Fri 2017-06-16 11:44:59 CEST; 11min ago
Docs: man:libvirtd(8)
Main PID: 9448 (libvirtd)
CPU: 1.790s
CGroup: /system.slice/libvirtd.service
├─ 5556 /usr/sbin/dnsmasq --conf-file=/var/lib/libvirt/dnsmasq/virtual-mgt-5.conf --leasefile-ro --dhcp-script=/usr/lib/libvirt/libvirt_leaseshelper
├─ 5557 /usr/sbin/dnsmasq --conf-file=/var/lib/libvirt/dnsmasq/virtual-mgt-5.conf --leasefile-ro --dhcp-script=/usr/lib/libvirt/libvirt_leaseshelper
...
├─ 8805 /usr/sbin/dnsmasq --conf-file=/var/lib/libvirt/dnsmasq/default.conf --leasefile-ro --dhcp-script=/usr/lib/libvirt/libvirt_leaseshelper
├─ 8806 /usr/sbin/dnsmasq --conf-file=/var/lib/libvirt/dnsmasq/default.conf --leasefile-ro --dhcp-script=/usr/lib/libvirt/libvirt_leaseshelper
├─ 9448 /usr/sbin/libvirtd
└─15116 qemu-system-x86_64 -enable-kvm -name guest=KVM-Ubuntu-GNS3-Server-17.04,debug-threads=on -S -object secret,id=masterKey0,format=raw,file=/var/lib/libvirt/
...
Jun 16 11:55:14 samsung-ubuntu dnsmasq-dhcp[8805]: DHCPREQUEST(virbr0) 192.168.122.124 52:54:00:03:9f:9f
Jun 16 11:55:14 samsung-ubuntu dnsmasq-dhcp[8805]: DHCPACK(virbr0) 192.168.122.124 52:54:00:03:9f:9f KVM-Ubuntu-GNS3-Server-17
# ping KVM-Ubuntu-GNS3-Server-17.04
ping: KVM-Ubuntu-GNS3-Server-17.04: Name or service not known
# ping 192.168.122.124
PING 192.168.122.124 (192.168.122.124) 56(84) bytes of data.