Once had this issue when back to PR1.1
n9 device into MALF coz dnsmasq failed to boot to much time.

after enable-rd-mode and set no-lifeguard-reset flag.
the device can boot.

and check the syslog, it shows failed to start up dnsmasq coz unknown interface lo. and actually interface lo is show as DOWN

and,as in the /etc/network/interfaces
lo entry seems right, huh ? I remember no need assign 127.0.0.1 address and netmask blabla, right ?
could someone show me your configure to verify ?

and, today, this bug appeared again on the PR1.2
still need find what failed to bring the interface lo

This issue disappear after reflash. but I am not supposed to do this flashing thing when this bug comes out again and again.
so, any help will be appreciated.