The test makes %t.fake a symlink to %t.real by running ln -sf %t.real %t.fake. If %t.fake already is a symlink to %t.real when this runs (e.g. if the test has run before), then this effectively becomes ln -sf %t.real %t.real, symlinking the directory to itself. At least on my mac, this leads to the directory containing itself.
As fix, just remove %t.fake before creating the symlink. To clean up build dirs on bots, also remove %t.real for a while.