Commit 
4b9852f4f389 ("KVM: x86: Fix INIT signal handling in various CPU states")
fixed KVM to also latch pending LAPIC INIT event when vCPU is in VMX
operation.
However, current API of KVM_SET_VCPU_EVENTS defines this field as
part of SMM state and only set pending LAPIC INIT event if vCPU is
specified to be in SMM mode (events->smi.smm is set).
Change KVM_SET_VCPU_EVENTS handler to set pending LAPIC INIT event
by latched_init field regardless of if vCPU is in SMM mode or not.
Fixes: 4b9852f4f389 ("KVM: x86: Fix INIT signal handling in various CPU states")
Reviewed-by: Mihai Carabas <mihai.carabas@oracle.com>
Signed-off-by: Liran Alon <liran.alon@oracle.com>
Signed-off-by: Paolo Bonzini <pbonzini@redhat.com>
 
                                vcpu->arch.hflags |= HF_SMM_INSIDE_NMI_MASK;
                        else
                                vcpu->arch.hflags &= ~HF_SMM_INSIDE_NMI_MASK;
-                       if (lapic_in_kernel(vcpu)) {
-                               if (events->smi.latched_init)
-                                       set_bit(KVM_APIC_INIT, &vcpu->arch.apic->pending_events);
-                               else
-                                       clear_bit(KVM_APIC_INIT, &vcpu->arch.apic->pending_events);
-                       }
+               }
+
+               if (lapic_in_kernel(vcpu)) {
+                       if (events->smi.latched_init)
+                               set_bit(KVM_APIC_INIT, &vcpu->arch.apic->pending_events);
+                       else
+                               clear_bit(KVM_APIC_INIT, &vcpu->arch.apic->pending_events);
                }
        }