Issue with npm and mounted directories


I’ve encountered a strange issue. I initially didn’t even think it was related to Local until I ran npm install on a directory that is not mapped to the local filesystem.

I have an automated build process on a Local site, I log in via ssh and run npm install in one of the WordPress directories (mounted directory is /app). Once I run the command, after some time I get an error:
ELOOP: too many symbolic links encountered, scandir....
If I run the same command on exact same files in any other directory that is not mapped to my local filesystem, the command runs successfully. I’ve tried various versions of node and npm. Same result.

Anyone knows what might be the issue?