moby: docker build hangs on COPY --from previous-stage

I have docker out of docker setup for my Gitlab Builds in K8s 1.16.7 on baremetal. I have a complicated multi-stage build that hangs on copy directory from the previous stage seems like for >20minutes. Have similar two COPY --from other-stage that do not hang. Size of the directory is about 8Mb - not much. strace: bash-5.0# strace -p 108 strace: Process 108 attached futex(0x33fbac8, FUTEX_WAIT_PRIVATE, 0, NULL stucks soooo long…

Output of docker version:

 docker version
 Client: Docker Engine - Community
  Version:           19.03.7
  API version:       1.40
  Go version:        go1.12.17
  Git commit:        7141c199a2
  Built:             Wed Mar  4 01:19:42 2020
  OS/Arch:           linux/amd64
  Experimental:      false
 Server: Docker Engine - Community
  Engine:
   Version:          19.03.7
   API version:      1.40 (minimum version 1.12)
   Go version:       go1.12.17
   Git commit:       7141c199a2
   Built:            Wed Mar  4 01:19:50 2020
   OS/Arch:          linux/amd64
   Experimental:     false
  containerd:
   Version:          v1.2.13
   GitCommit:        7ad184331fa3e55e52b890ea95e65ba581ae3429
  runc:
   Version:          1.0.0-rc10
   GitCommit:        dc9208a3303feef5b3839f4323d9beb36df0a9dd
  docker-init:
   Version:          0.18.0
   GitCommit:        fec3683

Output of docker info:

docker info
 WARNING: API is accessible on http://0.0.0.0:2375 without encryption.
          Access to the remote API is equivalent to root access on the host. Refer
          to the 'Docker daemon attack surface' section in the documentation for
          more information: https://docs.docker.com/engine/security/security/#docker-daemon-attack-surface
 Client:
  Debug Mode: false
 Server:
  Containers: 0
   Running: 0
   Paused: 0
   Stopped: 0
  Images: 32
  Server Version: 19.03.7
  Storage Driver: overlay2
   Backing Filesystem: <unknown>
   Supports d_type: true
   Native Overlay Diff: true
  Logging Driver: json-file
  Cgroup Driver: cgroupfs
  Plugins:
   Volume: local
   Network: bridge host ipvlan macvlan null overlay
   Log: awslogs fluentd gcplogs gelf journald json-file local logentries splunk syslog
  Swarm: inactive
  Runtimes: runc
  Default Runtime: runc
  Init Binary: docker-init
  containerd version: 7ad184331fa3e55e52b890ea95e65ba581ae3429
  runc version: dc9208a3303feef5b3839f4323d9beb36df0a9dd
  init version: fec3683
  Security Options:
   seccomp
    Profile: default
  Kernel Version: 5.3.13-1.el7.elrepo.x86_64
  Operating System: Alpine Linux v3.11 (containerized)
  OSType: linux
  Architecture: x86_64
  CPUs: 8
  Total Memory: 15.64GiB
  Name: production-app-gitlab-runners-docker-0
  ID: ACPC:SJLM:E5P5:5XMH:4V3K:77NZ:NBSD:MQBC:SDC2:EANJ:4BMN:6P2L
  Docker Root Dir: /var/lib/docker
  Debug Mode: false
  Registry: https://index.docker.io/v1/
  Labels:
  Experimental: false
  Insecure Registries:
   127.0.0.0/8
  Live Restore Enabled: false
  Product License: Community Engine

Additional environment details (AWS, VirtualBox, physical, etc.): Kubernetes 1.16.7 Centos 7 with 5.3.13-1.el7.elrepo.x86_64 kernel Baremetal Cilium 1.7.0 as network