This happens with https://chromium-review.googlesource.com/c/465426/
which triggers a eve-pre-cq test
https://luci-milo.appspot.com/buildbot/chromiumos.tryserver/pre_cq/27592

We can also repro locally with steps below.
What steps will reproduce the problem?
(1) Build eve qemu vm image
(2) Run the vm, sudo kvm -m 1024 -vga cirrus -pidfile /tmp/kvm.pid -net nic,model=virtio -net user,hostfwd=tcp:127.0.0.1:9222-:22 -hda [path to chromiumos_qemu_image.bin]
(3) Run test: test_that --board=eve localhost:9222 'login_OwnershipTaken'

What is the expected result?
test pass

What happens instead?
test times out

Looking at the logs it shows the cryptohomed hangs.  Manually trying to login in the vm using a gaia test account also hangs.

2017-04-13T19:56:22.282387+00:00 INFO attestationd[7981]: Attestation Daemon Started.
2017-04-13T19:56:22.283729+00:00 WARNING attestationd[7981]: libminijail[7981]: allowing syscall: connect
2017-04-13T19:56:22.283808+00:00 WARNING attestationd[7981]: libminijail[7981]: allowing syscall: sendto
2017-04-13T19:56:22.284058+00:00 WARNING attestationd[7981]: libminijail[7981]: logging seccomp filter failures
2017-04-13T19:56:22.285077+00:00 INFO attestationd[7981]: Attestation service started.
2017-04-13T19:56:30.775168+00:00 WARNING cryptohomed[5940]: Failed to initialize the trunks IPC proxy; trunksd is not ready.
2017-04-13T19:56:30.775219+00:00 ERR cryptohomed[5940]: Failed to initialize trunks factory.
2017-04-13T19:56:31.705742+00:00 WARNING kernel: [ 1630.330080] hwrng: no data available
2017-04-13T19:56:34.039765+00:00 WARNING cryptohomed[5940]: Failed to initialize the trunks IPC proxy; trunksd is not ready.
2017-04-13T19:56:34.039786+00:00 ERR cryptohomed[5940]: Failed to initialize trunks factory.
2017-04-13T19:56:34.039851+00:00 WARNING cryptohomed[5940]: Failed to finalize boot lockbox.
2017-04-13T19:56:34.039954+00:00 WARNING cryptohomed[5940]: Could not load the device policy file.
2017-04-13T19:56:41.706876+00:00 WARNING kernel: [ 1640.331120] hwrng: no data available
2017-04-13T19:56:50.800321+00:00 WARNING tpm_managerd[7971]: Failed to initialize the trunks IPC proxy; trunksd is not ready.
2017-04-13T19:56:50.801828+00:00 ERR tpm_managerd[7971]: Error TrunksDBusProxy cannot connect to trunksd.
2017-04-13T19:56:50.801869+00:00 ERR tpm_managerd[7971]: GetCapability: SAPI_RC_NO_CONNECTION
2017-04-13T19:56:50.801877+00:00 ERR tpm_managerd[7971]: Failed to query TPM properties: SAPI_RC_NO_CONNECTION
2017-04-13T19:56:50.801892+00:00 WARNING tpm_managerd[7971]: Error initializing trunks tpm state: SAPI_RC_NO_CONNECTION
2017-04-13T19:56:50.802210+00:00 CRIT tpm_managerd[7971]: Check failed: initialized_. #012/usr/lib64/libbase-core-395517.so(base::debug::StackTrace::StackTrace()+0x13) [0x7a283e60eda3]#012
2017-04-13T19:56:50.820301+00:00 WARNING crash_reporter[8038]: Could not load the device policy file.
2017-04-13T19:56:50.820585+00:00 WARNING crash_reporter[8038]: [user] Received crash notification for tpm_managerd[7971] sig 6, user 0 (developer build - not testing - always dumping)
2017-04-13T19:56:50.821739+00:00 INFO crash_reporter[8038]: State of crashed process [7971]: D (disk sleep)
2017-04-13T19:56:50.822203+00:00 WARNING crash_reporter[8038]: Crash directory /var/spool/crash already full with 32 pending reports
2017-04-13T19:56:50.822219+00:00 ERR crash_reporter[8038]: Could not create crash directory
2017-04-13T19:56:50.822227+00:00 ERR crash_reporter[8038]: Unable to find/create process-specific crash path
2017-04-13T19:56:50.826600+00:00 WARNING kernel: [ 1649.450700] init: tpm_managerd main process (7971) killed by ABRT signal
2017-04-13T19:56:50.826611+00:00 WARNING kernel: [ 1649.450721] init: tpm_managerd main process ended, respawning