Issue was discovered in Alpha3 and I suppose existed also in Beta1. But I can't be sure, since I was blindly patching grub-mkconfig_lib since then.
Currently (1.99~rc1-8ubuntu2) grun.conf generated perfectly. I suppose issues fixed somewhere in between. Sorry for wasted time, I was supposed to test an updated version. ** Changed in: grub2 (Ubuntu) Status: Incomplete => Fix Released -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/755379 Title: grub.conf contains incorrect "host" device when root device is a loopback file -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs