Why don't don't just rename the .mp4 file to .avi?
I've done that and it works perfectly with Deskcapes 8.51.
If you try that you need to be aware of a couple things file size and video quality
and most video without an edit won't have a seamless loop , you'll get more of
a start and stop and start again or a jump at the end. To create the seamless loop
you'll need to edit the video and if you do that then can be saved to the file type
you need it to be .
So if your OK with video editing have at it .