initRepoAtomically: Catch directory_not_empty (backport #11821) #11823
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Motivation
Fix bug
Fix flaky CI 🤞
Context
Probably fixes Possible race condition unpacking / handling github tarball #11815
Flaky CI since probably Move scripts/flake-regressions.sh into the flake-regressions repo #11817
Extends create git caches atomically #11581 (comment)
Priorities and Process
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This is an automatic backport of pull request #11821 done by [Mergify](https://mergify.com).