diff --git a/pungi/phases/ostree_installer.py b/pungi/phases/ostree_installer.py
index c1167810..3424ea8c 100644
--- a/pungi/phases/ostree_installer.py
+++ b/pungi/phases/ostree_installer.py
@@ -286,4 +286,5 @@ class OstreeInstallerThread(WorkerThread):
                 mounts=[compose.topdir],
                 chown_paths=[output_dir],
                 weight=compose.conf["runroot_weights"].get("ostree_installer"),
+                log_dir=self.logdir,
             )
diff --git a/pungi/runroot.py b/pungi/runroot.py
index 322a1b80..f119b59a 100644
--- a/pungi/runroot.py
+++ b/pungi/runroot.py
@@ -14,6 +14,7 @@
 # along with this program; if not, see <https://gnu.org/licenses/>.
 
 import os
+import re
 from six.moves import shlex_quote
 import kobo.log
 from kobo.shortcuts import run
@@ -95,6 +96,8 @@ class Runroot(kobo.log.LoggingBase):
                 for line in f:
                     if "losetup: cannot find an unused loop device" in line:
                         return True
+                    if re.match("losetup: .* failed to set up loop device", line):
+                        return True
         except Exception:
             pass
         return False