diff --git a/go.mod b/go.mod
index be8f9392a..85bc15f43 100644
--- a/go.mod
+++ b/go.mod
@@ -14,6 +14,7 @@ require (
 	github.com/buildpacks/pack v0.36.0
 	github.com/chainguard-dev/git-urls v1.0.2
 	github.com/cloudevents/sdk-go/v2 v2.15.2
+	github.com/containerd/errdefs v0.3.0
 	github.com/containerd/platforms v0.2.1
 	github.com/containers/image/v5 v5.31.1
 	github.com/coreos/go-semver v0.3.1
@@ -119,7 +120,6 @@ require (
 	github.com/cloudevents/sdk-go/sql/v2 v2.15.2 // indirect
 	github.com/cloudflare/circl v1.3.7 // indirect
 	github.com/containerd/cgroups/v3 v3.0.3 // indirect
-	github.com/containerd/errdefs v0.3.0 // indirect
 	github.com/containerd/log v0.1.0 // indirect
 	github.com/containerd/stargz-snapshotter/estargz v0.15.1 // indirect
 	github.com/containerd/typeurl/v2 v2.2.0 // indirect
diff --git a/hack/update-builder.go b/hack/update-builder.go
index b5129da1d..259e87c21 100644
--- a/hack/update-builder.go
+++ b/hack/update-builder.go
@@ -26,6 +26,7 @@ import (
 	pack "github.com/buildpacks/pack/pkg/client"
 	"github.com/buildpacks/pack/pkg/dist"
 	bpimage "github.com/buildpacks/pack/pkg/image"
+	"github.com/containerd/errdefs"
 	"github.com/docker/docker/api/types/image"
 	"github.com/docker/docker/api/types/registry"
 	docker "github.com/docker/docker/client"
@@ -108,7 +109,7 @@ func buildBuilderImage(ctx context.Context, variant, arch string) (string, error
 	if err != nil {
 		return "", fmt.Errorf("cannot parse reference to builder target: %w", err)
 	}
-	desc, err := remote.Head(ref, remote.WithAuthFromKeychain(DefaultKeychain))
+	desc, err := remote.Head(ref, remote.WithAuthFromKeychain(DefaultKeychain), remote.WithContext(ctx))
 	if err == nil {
 		fmt.Fprintln(os.Stderr, "The image has been already built.")
 		return newBuilderImage + "@" + desc.Digest.String(), nil
@@ -131,7 +132,14 @@ func buildBuilderImage(ctx context.Context, variant, arch string) (string, error
 	}
 	addGoAndRustBuildpacks(&builderConfig)
 
-	packClient, err := pack.NewClient(pack.WithKeychain(DefaultKeychain))
+	var dockerClient docker.CommonAPIClient
+	dockerClient, err = docker.NewClientWithOpts(docker.FromEnv, docker.WithAPIVersionNegotiation())
+	if err != nil {
+		return "", fmt.Errorf("cannot create docker client")
+	}
+	dockerClient = &hackDockerClient{dockerClient}
+
+	packClient, err := pack.NewClient(pack.WithKeychain(DefaultKeychain), pack.WithDockerClient(dockerClient))
 	if err != nil {
 		return "", fmt.Errorf("cannot create pack client: %w", err)
 	}
@@ -162,11 +170,6 @@ func buildBuilderImage(ctx context.Context, variant, arch string) (string, error
 		return "", fmt.Errorf("canont create builder: %w", err)
 	}
 
-	dockerClient, err := docker.NewClientWithOpts(docker.FromEnv, docker.WithAPIVersionNegotiation())
-	if err != nil {
-		return "", fmt.Errorf("cannot create docker client")
-	}
-
 	pushImage := func(img string) (string, error) {
 		regAuth, err := dockerDaemonAuthStr(img)
 		if err != nil {
@@ -261,6 +264,7 @@ func buildBuilderImageMultiArch(ctx context.Context, variant string) error {
 
 	remoteOpts := []remote.Option{
 		remote.WithAuthFromKeychain(DefaultKeychain),
+		remote.WithContext(ctx),
 	}
 
 	idx := mutate.IndexMediaType(empty.Index, types.DockerManifestList)
@@ -768,3 +772,17 @@ func dockerDaemonAuthStr(img string) (string, error) {
 
 	return base64.StdEncoding.EncodeToString(bs), nil
 }
+
+// Hack implementation of docker client returns NotFound for images ghcr.io/knative/buildpacks/*
+// For some reason moby/docker erroneously returns 500 HTTP code for these missing images.
+// Interestingly podman correctly returns 404 for same request.
+type hackDockerClient struct {
+	docker.CommonAPIClient
+}
+
+func (c hackDockerClient) ImagePull(ctx context.Context, ref string, options image.PullOptions) (io.ReadCloser, error) {
+	if strings.HasPrefix(ref, "ghcr.io/knative/buildpacks/") {
+		return nil, fmt.Errorf("this image is supposed to exist only in daemon: %w", errdefs.ErrNotFound)
+	}
+	return c.CommonAPIClient.ImagePull(ctx, ref, options)
+}