sudo modprobe loop max_loop=255 does not return an error, but lsmod | grep "loop" returns nothing. Likewise find /lib/modules/$(uname -r) -name "loop.ko" doesn't print any paths to the screen.
I'd think that this was because it was missing, but if I use modprobe to load a nonsense name, then I get an error that it doesn't exist.
So, where is the kernel module loop? Does it exist at all?