Can't create a container with a loop backing store in 1.0.8

Since version 1.0.8 of the lxc package in trusty it appears that it's no longer possible to create a container with a loop backing store. To reproduce the issue, install version 1.0.8-0ubuntu0.3 of the lxc, liblxc1 and python3-lxc packages on trusty and run the following:

root@c4b2:/var/lib/lxc# /usr/bin/lxc-create -l DEBUG -n testcontainer --bdev loop -t ubuntu -- -r precise
lxc_container: bdev.c: do_loop_create: 2036 Error creating filesystem type ext3 on /var/lib/lxc/testcontainer/rootdev
lxc_container: lxccontainer.c: do_bdev_create: 819 Failed to create backing store type loop
lxc_container: lxccontainer.c: lxcapi_create: 1299 Error creating backing store type loop for testcontainer
lxc_container: lxc_create.c: main: 274 Error creating container testcontainer

If I downgrade all the lxc packages to 1.0.7 on the same system it works fine. This issue is similar to what was reported in https://lists.linuxcontainers.org/pipermail/lxc-users/2015-September/010092.html but in that case the issue was occurring when running with backport versions 1.1.3, 1.1.2 but again, not with version 1.0.7.

Please let me know if you require further information.

Mike.