I have no clue about sshfs and this particular pax error message.

You could give mount_psshfs(8) a try.  Maybe you have better luck with that.
I've briefly used that a couple of years ago.  But not with build.sh.

What I usuall do is build sets and extract them on the remote system.
I.e.:

ssh root@remote tar -xzp -C /somehere

--chris

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