The script does not "exist". That means when I do

sudo service rc-local stop

it stops, and when I do

sudo service rc-local start

it is then hanging, or running, it is fine, but I
would like to exit back to shell on such run.

Adding & on end of line is not helping.

How do I make it execute and exit back to shell?

 You don't, if you want it supervised. If you want to launch s6-svscan
under systemd, you should write a proper unit file for it, so systemd
can manage it as one of its services.

 If you're fine with it not being supervised and insist on launching
s6-svscanboot from /etc/rc.local, then you want to enclose all its
commands in a "background { }" block, which is execline's equivalent
of the shell's &.


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