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There was infact no such issue. I somehow missed to check the file-permissions of the .iso file. Set it to exe, and then was able to boot RHEL via kvm.
There is no command like this:
$ apt-get install update
Reading package lists... Done
Building dependency tree
Reading state information... Done
E: Unable to locate...
Virtualbox Extension Pack needs to be installed using root powers according to these bug reports: