I had this same issue, but I managed to work around it by changing
exactly this file.

If you change

/home /home none rw,bind 0 0

to

/home /home none rw,rbind 0 0

the home folder gets mounted properly.

I hope this helps

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https://bugs.launchpad.net/bugs/769595

Title:
  Encrypted home not mountable under chroot

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