Mobile-install Merging dexes step takes forever to run

We have an enormous app target (60k+ targets in build graph) and running mobile-install v3 got stuck on `MI Merging dexes;` steps and never finishes. This issue doesn't exist in the legacy mobile-install v1 and can only be repro-ed on the large app target. I'm wondering whether this indicates any regression (e.g. deadlock issue) in mobile-install v3

FYI: my build is based on latest main branch commit https://github.com/bazelbuild/rules_android/commit/e59c297d7fc81f2496aa47e0a33ef58c8efff6e4