@JamesG, Yea i ended up having to go with a bare metal ubuntu install + docker containers for everything and have been off to the races, I would still like a hypervisor but unfortunately had to move on.
The software stack on these intel's gpus is still maturing but i'm running some pretty impressive models on them and for the money it has been a good investment, hopefully these will gain some popularity and get better support all around.
GPU hosting definitely deserves some attention from xcpng. I would buy some licenses for some production use cases but things like this and nested virtualization (completely unrelated but also something i ran into this past week) needs attention.