diff --git a/changelog/@unreleased/pr-1693.v2.yml b/changelog/@unreleased/pr-1693.v2.yml
new file mode 100644
index 000000000..4ad455e76
--- /dev/null
+++ b/changelog/@unreleased/pr-1693.v2.yml
@@ -0,0 +1,7 @@
+type: fix
+fix:
+  description: Do not use the remote build cache for `mergeDiagnosticJson`; it takes
+    far longer than just doing the operation locally. Avoids spamming output with
+    "Requesting from remote build cache" too.
+  links:
+  - https://github.com/palantir/sls-packaging/pull/1693
diff --git a/gradle-sls-packaging/src/main/java/com/palantir/gradle/dist/artifacts/ExtractFileFromJar.java b/gradle-sls-packaging/src/main/java/com/palantir/gradle/dist/artifacts/ExtractFileFromJar.java
index e36dc2a2a..df0fffc68 100644
--- a/gradle-sls-packaging/src/main/java/com/palantir/gradle/dist/artifacts/ExtractFileFromJar.java
+++ b/gradle-sls-packaging/src/main/java/com/palantir/gradle/dist/artifacts/ExtractFileFromJar.java
@@ -22,7 +22,6 @@
 import java.nio.file.Files;
 import java.util.zip.ZipEntry;
 import java.util.zip.ZipFile;
-import org.gradle.api.artifacts.transform.CacheableTransform;
 import org.gradle.api.artifacts.transform.InputArtifact;
 import org.gradle.api.artifacts.transform.TransformAction;
 import org.gradle.api.artifacts.transform.TransformOutputs;
@@ -30,10 +29,12 @@
 import org.gradle.api.provider.Provider;
 import org.gradle.api.tasks.PathSensitive;
 import org.gradle.api.tasks.PathSensitivity;
+import org.gradle.work.DisableCachingByDefault;
 import org.slf4j.Logger;
 import org.slf4j.LoggerFactory;
 
-@CacheableTransform
+@DisableCachingByDefault(
+        because = "Extracting a single file from a zip is much faster than making network requests to the build cache")
 public abstract class ExtractFileFromJar implements TransformAction<FileExtractParameter> {
     private static final Logger log = LoggerFactory.getLogger(ExtractFileFromJar.class);