[BUG] Apply-PnPProvisioningTemplate : The attempted operation is prohibited because it exceeds the list view threshold

[piteerus]

Environment

[X] Office 365 / SharePoint Online
[ ] SharePoint 2016
[ ] SharePoint 2013

Expected or Desired Behavior

PnP provisioning template successfully applied.

Observed Behavior

Apply-PnPProvisioningTemplate : The attempted operation is prohibited because it exceeds the list view threshold
enforced by the administrator.

Applying provisioning template...
Apply-PnPProvisioningTemplate : The attempted operation is prohibited because it exceeds the list view threshold enforc
ed by the administrator.
At \SharePoint\provisioning\apply-site-template.ps1:49 char:1

• Apply-PnPProvisioningTemplate -Path $templatePath

•   + CategoryInfo          : WriteError: (:) [Apply-PnPProvisioningTemplate], ServerException
    + FullyQualifiedErrorId : EXCEPTION,PnP.PowerShell.Commands.Provisioning.Site.ApplyProvisioningTemplate
  
  

Steps to Reproduce

The list above 5k+ list items and provisioning template is applied. It fails with the above error.

Thank you for reporting this issue. We will be triaging your incoming issue as soon as possible.

[piteerus]

OK, I was able to narrow it down. It seems the bug is related to the following code:

<pnp:Files> <pnp:File Src="SiteAssets/images/default-thumbnail.jpg" Folder="SiteAssets/images" Overwrite="FALSE" /> </pnp:Files>

I have more than 5k items in my "Site Assets" library and the above fails. Any ideas on how to fix it?