At the moment, Graal does not support compilation of non-reducible loops (i.e., loops with multiple entry-points). This is fine on HotSpot as we can just delegate execution of such methods to either the interpreter or C1 and they are fairly rare (for example javac or scalac would never produce such code patterns).
However, as you have seen, there is no backup strategy available on SVM/native-image.
Structured loops at an important (an conscious) decision in the design of the Graal IR so i don't think we want to change that. However there are ways we could improve support for non-reducible loops that appear in bytecodes.
In particular we could select the entry point that we want to keep and then duplicate parts of the loop on the other entry path so that a single entry point remains. This would cause some increase in code size but at least it would allow Graal to better support Kotlin coroutines .