Doing some testing with CHR image (latest RC Build 6.39rc55) And it worked and installed using the VMDK as expected.
Xenserver 7.0 with latest patches.
However when I do a live migration between the machines, the kernel crashes into a spinlock at 100% CPU.
Now I try to upgrade from 6.42.7 to a newer version (6.43.x) and it happens again. But not only the live migration … directly after upgrading the host takes 100% CPU. I still run on Ubuntu 16.04 with Xen 4.6.5.