With the following combination, it's now working for me.
Install: Run Android SDK Manager. In the "Android 2.2.2 (API 17)" section, install Intel x86 Atom System Image. It offers Rev. 1. Also download, install, then finish installing Intel HAXM, if you haven't done that already. You might need to allocate more RAM to HAXM. IIRC, I have it set to 2 GB.
(Android SDK Manager has Rev. 2 of ARM EABI v7a System Image. According to Android emulator 4.2.2 not showing add widget option in lock screen, lock screen widgets work in Rev. 1 but not Rev. 2. I didn't test the ARM system images.)
Create an AVD with these settings:
- Device: Galaxy Nexus (4.65", 720 x 1280: xhdpi)
- Target: Android 4.2.2 - API Level 17
- CPU/ABI: Intel Atom (x86)
- Skin: Skin with dynamic hardware controls
- Memory options: RAM: 768, VM Heap: 64
- Internal Storage: 200 MiB
- SD Card: Size: 100 MiB
- Emulation Options: [x] Use Host CPU
Add a lock screen widget:
- Launch this emulator AVD.
- Run your app in this emulator.
- If you need to get to the lock screen, press the simulated power button twice (off, on).
- On the lock screen, swipe down on the clock widget. It should grow a large rectangle. Release the mouse.
- Swipe to the right until you get to the "+" screen.
- Tap the "+" then pick your widget from the list.
NOTE: Android L does not support lock screen widgets. The feature is gone.
I hope this works for y'all. There may be more independent variables, and the above configuration is surely not the only one that works.