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OK, the bug had nothing to do with SAG, I'm not sure how disabling that was fixing it for you.
> k_diffusion_commit_hash = os.environ.get('K_DIFFUSION_COMMIT_HASH', "5b3af030dd83e0297272d861c19477735d0317ec")
This was the commit hash of k_diffusion hard-coded into the repositories folder when I made that repositories.tar for it to load up in one go.
This is the actual fix, until I update repositories.tar not for a while.
I'll update it right now.