Converting to Squash breaks Gulp

[Fyb3roptik]

BUG

Version 3.12.1
convertToSquashfs: true

When running deployAndSignPackage I get back

Error during deployAndSignPackage: Error: Parse Error: Expected HTTP/
    at Socket.socketOnData (node:_http_client:540:22)
    at Socket.emit (node:events:519:28)
    at Socket.emit (node:domain:551:15)
    at addChunk (node:internal/streams/readable:559:12)
    at readableAddChunkPushByteMode (node:internal/streams/readable:510:3)
    at Readable.push (node:internal/streams/readable:390:5)
    at TCP.onStreamRead (node:internal/stream_base_commons:190:23)
    at TCP.callbackTrampoline (node:internal/async_hooks:130:17) {
  bytesParsed: 168,
  code: 'HPE_INVALID_CONSTANT',
  reason: 'Expected HTTP/',
  rawPacket: <Buffer 65 2e 61 70 70 65 6e 64 43 68 69 6c 64 28 64 29 3b 0a 20 20 20 20 20 20 20 20 20 20 20 20 0a 20 20 20 20 20 20 2f 2f 20 52 65 6e 64 65 72 20 6d 65 73 ... 123 more bytes>
}
Raw Response: e.appendChild(d);

      // Render messages (info, error, and success)
      addMessages(node, params.messages);
    });
  </script>
</body>
</html>

If I set convertToSquashfs: false then it works fine