app-emulation/libvirt today has a hard dependency on net-dns/dnsmasq. However, when a DNS server already is provided at the local machine (for example by bind), this poses a problem. I suggest having this dependency on a use-flag instead (in absence of a virtual/dns). Reproducible: Always
This doesn't sound like something that should be fixed in the ebuild. Does dnsmasq block bind, or can they both be installed at once? Libvirt probably does specifically require dnsmasq rather than any other dns server (such as bind), but it probably only runs it on a virtual interface (meaning it shouldn't impact on a running bind instance). If you're having some kind of conflict between dnsmasq and bind being installed at the same time then that's a bug for them, rather than libvirt. If you're having problems using libvirt with bind running, then that's a libvirt issue rather than an ebuild issue. Please let us know which problem you're having so we can reassign this bug appropriately... 5:)
_If_ dnsmasq is installed libvirtd will start dnsmasq on the default network interface, listening for DNS requests. This is fine in most cases, but not all... If you happen to run libvirtd on the same machine as you run your DNS server, this breaks. Bind will try to listen for DNS requests on the same default network (normally eth0 or virbr0), but if libvirtd was started before bind, dnsmasq have already bound to port 53, and bind fails to start with the error message "Address already in use". In this case, dnsmasq will of course not work, because it only forward the requests to the nameserver in /etc/resolv.conf, this is, localhost...
This is a configuration error with the default dnsmasq settings. We can add a note about this and get the dnsmasq maintainers to patch this.
There's a warning message now and it's only depended on for the network USE flag.