Vendor img fixed like you saidAccording to the server log, you are running v220.127.116.11 on Linux. This version still has the vendor extract issue. It was fixed for Linux, WSL2, and Mac in v18.104.22.168 and higher.
BTW, if you tested building a sparse img in v22.214.171.124 Ubuntu 18.04, you were using the old make_ext4fs. In this case, please test building the img again in v126.96.36.199
edit: I forgot to answer your question about asking for password when extracting. Starting with v188.8.131.52, Linux, WSL2, and Mac use mount to extract img files by default. This requires root permissions, so the sudo password is required. v184.108.40.206 used the Python ext4 module to extract just like Windows. The Python ext4 module is the reason for the xattr crash.
But when I use e2fsdroid
[INFO] Building sparse system_new.img Running: mke2fs mke2fs 1.45.4 (23-Sep-2019) Creating filesystem with 917504 4k blocks and 229376 inodes Filesystem UUID: f7f4d979-8ef1-425a-8141-14799c93c665 Superblock backups stored on blocks: 32768, 98304, 163840, 229376, 294912, 819200, 884736 Allocating group tables: 0/28 done Writing inode tables: 0/28 done Writing superblocks and filesystem accounting information: 0/28 done Running: e2fsdroid  not found in fs_config, using defaults
So not Ubuntu problem
And I didnt touch the rom.
Only extract system and vendor and build