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+<think>
+Alright, let's break down this bug report to figure out the category. The user is reporting that the USB Activkey smartcard isn't working anymore after updating from qemu-kvm-1.0.1 to 1.1.1-r1 on Gentoo.
+
+Looking at the log provided, there are errors about the 'ccid-card-emulated' device failing to initialize. The error messages mention "Device 'ccid-card-emulated' could not be initialized." This suggests that it's related to a specific component within QEMU-KVM, which is the hypervisor part.
+
+QEMU-KVM includes various hardware devices emulated for virtual machines. In this case, the smartcard device isn't working correctly, so it's a problem with how the device is being handled in the hypervisor environment. The failure occurs during the initialization of the device, indicating an issue with device emulation or setup within KVM.
+
+The possible categories include 'hypervisor' and 'device'. Since this is about a specific device (smartcard) not functioning correctly under QEMU-KVM, which is the hypervisor component, the appropriate category would be 'hypervisor'.
+</think>
+
+hypervisor
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