SVE is interesting because it gives you forward binary compatibility. i.e. your binary, written for a 128bit wide vector unit, will benefit directly from a newer 256bit wide unit without recompilation.
Who says they don't already support SVE; is it publicly known they support it or not? Especially if the binary doesn't have to be recompiled you'd never know whether they implemented it or not right?
I would guess the processor would just cause an exception/interrupt and it would just call an OS level exception/interrupt handler which would probably tell the user what the exception/interrupt was that occured; in this case an unsupported instruction.
[1] https://community.arm.com/developer/tools-software/hpc/b/hpc... [2] https://community.arm.com/developer/ip-products/processors/b...