Just a follow up, in case some one has any insight.
I commented out that particular part of roles/deploy/hooks/finalize-after.yml but got the same error when trying trying to update the db in a multisite instance.
I ultimately went about testing if I could deploy a non-multisite instance without using a subdomain and was successful.
So somewhere along the line, I’m getting that Error: Site example.com/ not found when trying to update the database in multisite. I did see a suggestion to add the url to the wp-cli.yml file but not sure how that would affect local dev, or if it would do anything. I did try adding --url=example.com to wp core update-db --network to no avail.
Pretty stumped, but appreciate the responses thus far.