Does the last release of loop-AES v3.d contain the fix for the issue with recent libfuse versions? Ubuntu made a fix for this here:
libfuse tries to execl /bin/mount with options --no-canonicalize and /bin/umount with --no-canonicalize --fake which are not recognized by the loop-aes patched utils. This breaks various programs using fuse. The Ubuntu source pacgage backports these options to the patched loop-AES utils.
This has been the subject of bugs on Red Hat, Debian, Gentoo and probably others. Ubuntu's is the only fix I have seen.
I was writing wappers and to run the appropriate version of the utils on my system when I found that Ubuntu had a fix.