System Information
Operating system: Linux Ubuntu 18.04
Graphics card: Intel iGPU HD4600

Blender Version
Broken:
blender-2.80-9a8a5676da82-linux-glibc224-x86_64
Worked: (optional)
2.79b

Short description of error

Mesh Deform Modifier does not work in some scenarios:

1. If control mesh is extruded from circle object with fill type: Nothing,

and faces* of extruded circle are created manually

2. If control mesh is extruded from separated vertex/edge loop of existing object,

and faces* of extruded loop are created manually

3. If control mesh is extruded from separated face of existing object

*faces that closes mesh, to make it "watertight"

Video:
https://drive.google.com/open?id=1SOwgtyrwAMVP47ervIgNwOVuepoklMVE

Blendfile used for video:

Exact steps for others to reproduce the error:

1. open blender
2. Shift + A -> Mesh -> Circle
3. Set radius to 1.5m
4. Set Fill Type to Nothing
5. Set Location Z to -1.5m
6. Click Select Circle
7. go to edit mode
8. A to select all vertices
9. E + Z + 3 to extrude vertex loop 3m along Z axis
10. F to make face on top vertex loop
11. Alt + LMB to select bottom vertex loop
12. F to make face on bottom vertex loop
13. Go to object mode
14. Select object named Circle
15. Go to Object tab -> Viewport Display
16. Set Display As to Wire
17. Select object named Cube
18. Go to Modifiers tab
19. Add Mesh Deform Modifier
20. As contorl object of Deform Modifier set object named Circle
21. Click Bind button
22. Click select object named Circle
23. Go to edit mode
24. ALT + LMB to select top vertex loop
25. S + 5 to scale vertex loop by factor of 5