This problem still exists for Ubuntu 20.04 and also affects the encfs-
package.
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https://bugs.launchpad.net/bugs/1829149
Title:
mounting over filesystem type 0xfe534d42 is forbidden
To
** Also affects: encfs (Ubuntu)
Importance: Undecided
Status: New
** Also affects: sshfs-fuse (Ubuntu)
Importance: Undecided
Status: New
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