Cannot build and update Docker container: "Error processing tar file"


It seems that building the official nextcloud-app container in my setup fails with the following output:

blah@fsdf:/a/docker/nextcloud# docker-compose build --pull --no-cache --force-rm nextcloud-app
Building nextcloud-app
Building nextcloud-app
ERROR: Error processing tar file(exit status 1): write /data/filestore/xxx/files/...: no space left on device

Unfortunately, after pruning the issue persists. It seems it is trying to backup the data into a tar file. I have no idea why this is happening during the build and how to disengage the process from the file data. Obviously duplicating the data means the storage volume times 2 will be the required free space to build the image… and it fails.

How can I move forward?