I tried the same commands but in the “X86-64” target ISO installation on a v4 Intel CPU, and the result is exactly the same with “Argument list too long” error, failing at the same stage after about 2h of build.
Hence it is not related to the “X86-64_v2” specific target unlike I believed, this is a common issue to AlmaLinux 10.1 base installation.
I tried also on an LVM with xfs filesystem instead of ext4 on the root partition, and the result is exactly the same.
Could someone try with a RHEL 10.1 and see if this error occurs too, and if yes to report a bug in RHEL support ?