Upon closer inspection of the ~/.gnupg folder it appears that at some
point a directory is created with the label private-keys-v1.d, the
generation process does not recreate the directory if its missing and
running the batch command returns a very un-useful "file not found"
error if the directory doesn't exist.

Inside this directory are files in the format [keyid].key.
Inspecting the files for formatting with gpg --list-packets return the 
following output:

gpg: no valid OpenPGP data found.
gpg: processing message failed: Unknown system error

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https://bugs.launchpad.net/bugs/1846153

Title:
  gpg generate-key fails

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