Mount on filesystem of type eCryptfs explicitly disallowed due to known incompatibilities
You mentioned that your home folder is "encrypted by Ubuntu" -- it's actually encrypted using eCryptfs. Check the output of:
grep $HOME /proc/mounts
Nesting encrypted directories inside of encrypted directories is not supported with eCryptfs. Sorry.
Full disclosure: I'm one of the authors and current maintainers of eCryptfs.