Installing system on file?

I’m trying to install Ubunutu 20.04 LTS on a file. What I mean by this, is that I created a file with

truncate -s 10G file.bin

and now I want to write to it the same data that would have been written to /dev/sda have I tried to install ubuntu on it. I tried to use ubiquity, but nothing worked. Has anyone done something like this?

I tried running following commands:

mknod /dev/sdd b 7 200 
losetup /dev/sdd ./file.bin

As per this link: Install Ubuntu on a loop device?, but I get an unspecified error.

I don’t know what I did different but now I got this error message:
"failed to make ext4 partition /dev/sdd1"

If I manually mkfs.ext4 file.bin I get this error "The efi file system creation in partition #1 of /dev/sdd failed."