According to the man page for hdiutil:
DiskImages uses many frameworks and can encounter many error codes. In
general, it tries to turn these errors numbers into localized strings for
the user. For background, intro(2) is a good explanation of the initial
error domain, the BSD errno values. For debugging, -verbose should gen-
erally provide enough information to figure out what has gone wrong. The
following is a list of interesting errors that hdiutil may encounter:
[ENXIO] Device not configured. This error is returned by
DiskImages when its kernel driver or framework helper
cannot be contacted. The former usually means the
IOHDIXController kernel extension can't be loaded.
The latter usually means Foundation's distributed
objects RPC mechanism cannot be configured. DO
doesn't work under dead mach bootstrap contexts such
as exist in a reattached screen(1) session. Root
users can take advantage of StartupItemContext(8) to
access the startup item mach bootstrap context.
So, it is possible that your IOHDIXController kernel extension is missing or damaged. Open up System Profiler and click on Extensions in the contents pane, then find your IOHDIXController. If it is in place and appears to be working properly, I don't know what to suggest next. In the event that the kernel extension is okay, the page then talks about framework helpers and RPC, which I know nothing about.