I am getting this error as well. It “deleted” my plugin however it is still there in the plugin folder but not showing on the plugin screen.
Got a workaround to actually work by stoping Faster Docker, removing the local plugin and dragging in the plugin from the live site that needed updating as well, and then activating and updating. This worked but was a huge pain.
So basically it sounds like I need to turn off Faster Docker Volumes. Stop site. Start site. Update plugins. Turn on Faster Docker Volumes.
I am doing maintenance on 15+ sites monthly and this is a pretty big deal.
I am on version 2.1.2 of Local
Mac os Sierra 10.12.6