Error hdiutil: create failed - File exists -> but the file does not exist until this command fails

Trying to create a .dmg file on an NFS share.

% rm -f store.dmg && ls -l store.dmg
    ls: store.dmg: No such file or directory
    % hdiutil create -size 300g -fs APFS -volname Temp store.dmg || ls -l store.dmg
    hdiutil: create failed - File exists
    -rw-r--r--  1 risner  wheel  0 Sep 13 22:44 store.dmg

Disk Utility also fails with a file exists error. I can read and write files on the NFS share fine. No issues. The mount in vifs is as such: 192.168.40.10:/store /System/Volumes/Data/Store nfs rw,resvport,hard,bg,intr,rw,tcp,nfc,noatime Still not working directly on the NFS, but bmike suggested I create it locally and move to the NFS share. I created a sparse bundle by adding -type SPARSE to the hdiutil and moved the sparse image to the NFS share. I can read/write files with the image open. Why can I not directly create on the NFS share? macOS 12.4 on M1 Mac Mini 8Gb