Unable to run sh steps inside docker agent: script.sh Not Found - jenkins

Question

When trying to run the following declarative pipeline:
pipeline {
agent { docker 'alpine' }
stages {
stage('Test') {
steps {
sh('printenv')
}
}
}
}
I get the error:
[Pipeline] {
[Pipeline] stage
[Pipeline] { (Declarative: Agent Setup)
[Pipeline] sh
[TmpTest] Running shell script
+ docker pull alpine
Using default tag: latest
latest: Pulling from library/alpine
Digest: sha256:1072e499f3f655a032e88542330cf75b02e7bdf673278f701d7ba61629ee3ebe
Status: Image is up to date for alpine:latest
[Pipeline] }
[Pipeline] // stage
[Pipeline] sh
[TmpTest] Running shell script
+ docker inspect -f . alpine
.
[Pipeline] withDockerContainer
Jenkins does not seem to be running inside a container
$ docker run -t -d -u 107:113 -w /var/lib/jenkins/workspace/TmpTest -v /var/lib/jenkins/workspace/TmpTest:/var/lib/jenkins/workspace/TmpTest:rw,z -v /var/lib/jenkins/workspace/TmpTest#tmp:/var/lib/jenkins/workspace/TmpTest#tmp:rw,z -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** -e ******** --entrypoint cat alpine
[Pipeline] {
[Pipeline] stage
[Pipeline] { (Provision Server)
[Pipeline] sh
[TmpTest] Running shell script
sh: /var/lib/jenkins/workspace/TmpTest#tmp/durable-1abfbc69/script.sh: not found
[Pipeline] }
[Pipeline] // stage
[Pipeline] }
$ docker stop --time=1 db551b51404ba6305f68f9086320634eeea3d515be134e5e55b51c3c9f1eb568
$ docker rm -f db551b51404ba6305f68f9086320634eeea3d515be134e5e55b51c3c9f1eb568
[Pipeline] // withDockerContainer
[Pipeline] }
[Pipeline] // node
[Pipeline] End of Pipeline
ERROR: script returned exit code 127
Finished: FAILURE
When monitoring the pipelines #tmp directory whilst its running I can see script.sh created for a short period. I am unable to tell if it has been created, or already deleted, when the pipeline tries to execute it in the running container.
some system details
Jenkins running as a single node system which has docker installed.
Jenkins v2.60.1
(all plugins fully updated)
docker --version
Docker version 17.06.0-ce, build 02c1d87

Answer 1

Have the same setup (single Jenkins 2.73.1 host on an EC2 instance, not inside a container, with Docker 17.09.0-ce) and the same behavior, with both declarative and scripted pipeline.
It tries to run the script on the host itself if you specify
sh 'sh ./yourscript.sh'
or
sh './yourscript.sh'
instead of sh 'script.sh'