Docker-in-docker not working in GitLab runner 1.8.2/1.9.2

We'd like to use a docker image to build other docker images. We are using GitLab Runner 1.9.2 and GitLab 8.14.5.

To do so, we want to use 'dind' as also propose in the gitlab documentation (https://about.gitlab.com/2016/05/23/gitlab-container-registry/). The yml file to build the container is the following:

image: docker:git
services:
- docker:dind

build:
  stage: build
  script:
    - docker build -t xxxx .

There is privileged runner (type: docker) in place to run this image; toml looks the following:

concurrent = 1
check_interval = 0

[[runners]]
  name = "privileged Docker Container"
  url = "xxxx"
  token = "xxxxxx"
  executor = "docker"
  [runners.docker]
    tls_verify = false
    image = "docker:git"
    privileged = true
    disable_cache = false
    volumes = ["/cache"]
  [runners.cache]

The build fails with the following log output

Running with gitlab-ci-multi-runner 1.9.2 (ade6572)
Using Docker executor with image docker:git ...
Using locally found image version due to if-not-present pull policy
Starting service docker:dind ...
Waiting for services to be up and running...

*** WARNING: Service runner-f8e34f23-project-44-concurrent-0-docker probably didn't start properly.

API error (500): Cannot link to a non running container: /runner-f8e34f23-project-44-concurrent-0-docker AS /runner-f8e34f23-project-44-concurrent-0-docker-wait-for-service/runner-f8e34f23-project-44-concurrent-0-docker

2017-01-07T15:49:33.983316200Z mount: permission denied (are you root?)
2017-01-07T15:49:33.983409300Z Could not mount /sys/kernel/security.
2017-01-07T15:49:33.983420821Z AppArmor detection and --privileged mode might break.
2017-01-07T15:49:34.008670065Z mount: permission denied (are you root?)

*********

Using locally found image version due to if-not-present pull policy
Running on runner-f8e34f23-project-44-concurrent-0 via gl...
Cloning repository...
Cloning into '/builds/base-tech/BuildSystem'...
Checking out 44a1bd78 as master...
$ docker build  -t xxxx .
Cannot connect to the Docker daemon. Is the docker daemon running on this host?
ERROR: Build failed: exit code 1

We also updated the Gitlab Runner 1.8.2 to 1.9.2 which didn't change anything.

I am facing the same issue. I am using Gitlab runner 1.10.4.

Same here. Also read a lot about the issue which is similar to the one solved before by enabling privileged mode. Now if you add the /var/run/docker.sock:/var/run/docker.sock volume mapping into your config.toml it kind of works, but that cannot be the proper solution.