I encountered "mount: losetup failed " error when enabling native bridge. Similar problems are also reported elsewhere [1][2]. Those discussions and suggestions did not help me solve the problem.
After some investigation, I found the mount script [3] is to blame. In particular, the downloaded houdini_x.sfs should be mounted as read-only explicitly, i.e. "mount -o ro,xxx".
On one hand, I assume the houdini_x.sfs is supposed to be used as read-only anyway. On the other hand, the file permission of "houdini_x.sfs" itself can be read-only. For example, a) the root disk is readonly in qemu cmdline b) use a squashfs as system image, which will be mount as loop thus is readonly c) The /system may be mount as read-only.
In my case, I am booting android-x86 on a squashfs system image under qemu, thus /system/etc/houdini_x.sfs is a read-only file. Changing [3] to read-only mount solved my problem.
If you also had similar problems, please try this method out and let developers know whether it helps.