Comment # 5 on bug 913517 from Andrew Daugherity

A separate but related bug worth noting: /usr/share/YaST2/clients/vm_finish.rb
(part of yast2-vm) adds an 'x0:12345:respawn:/sbin/agetty -L 9600 xvc0 xterm'
line to /etc/inittab at the end of installation, if you are in a Xen DomU and
/dev/xvc0 exists.  This obviously has no effect under systemd (in fact, on my
VM that is the only line in inittab).

This could be fixed to override systemd as I described in comment 4, but I
think it would be better to fix systemd itself, and have vm_finish do nothing
if running under systemd.