Looks like a misunderstanding rather than a bug, but responding in bugzilla.
If someone could take a look at this for SAM-1.2
https://bugzilla.redhat.com/show_bug.cgi?id=884973
Depending on the importance of hypervisors, I think it would be beneficial to get one set up for dev and QE to use. There was a bug already in this code that was introduced last March and only caught recently in katello master.
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