ERROR: update-rc.d-0.7-r5 do_install: Error executing a python function in exec_python_func() autogenerated:

The stack trace of python calls that resulted in this exception/failure was:
File: 'exec_python_func() autogenerated', lineno: 2, function: <module>
     0001:
 *** 0002:extend_recipe_sysroot(d)
     0003:
File: '/projects/poky/meta/classes/staging.bbclass', lineno: 548, function: extend_recipe_sysroot
     0544:    for f in fixme:
     0545:        if f == '':
     0546:            staging_processfixme(fixme[f], recipesysroot, recipesysroot, recipesysrootnative, d)
     0547:        elif f == 'native':
 *** 0548:            staging_processfixme(fixme[f], recipesysrootnative, recipesysroot, recipesysrootnative, d)
     0549:        else:
     0550:            staging_processfixme(fixme[f], multilibs[f].getVar("RECIPE_SYSROOT"), recipesysroot, recipesysrootnative, d)
     0551:
     0552:    for p in postinsts:
File: '/projects/poky/meta/classes/staging.bbclass', lineno: 174, function: staging_processfixme
     0170:    for fixmevar in ['COMPONENTS_DIR', 'HOSTTOOLS_DIR', 'PKGDATA_DIR', 'PSEUDO_LOCALSTATEDIR', 'LOGFIFO']:
     0171:        fixme_path = d.getVar(fixmevar)
     0172:        cmd += " -e 's:FIXME_%s:%s:g'" % (fixmevar, fixme_path)
     0173:    bb.debug(2, cmd)
 *** 0174:    subprocess.check_output(cmd, shell=True, stderr=subprocess.STDOUT)
     0175:
     0176:
     0177:def staging_populate_sysroot_dir(targetsysroot, nativesysroot, native, d):
     0178:    import glob
File: '/usr/lib64/python3.6/subprocess.py', lineno: 336, function: check_output
     0332:        # empty string. That is maintained here for backwards compatibility.
     0333:        kwargs['input'] = '' if kwargs.get('universal_newlines', False) else b''
     0334:
     0335:    return run(*popenargs, stdout=PIPE, timeout=timeout, check=True,
 *** 0336:               **kwargs).stdout
     0337:
     0338:
     0339:class CompletedProcess(object):
     0340:    """A process that has finished running.
File: '/usr/lib64/python3.6/subprocess.py', lineno: 418, function: run
     0414:            raise
     0415:        retcode = process.poll()
     0416:        if check and retcode:
     0417:            raise CalledProcessError(retcode, process.args,
 *** 0418:                                     output=stdout, stderr=stderr)
     0419:    return CompletedProcess(process.args, retcode, stdout, stderr)
     0420:
     0421:
     0422:def list2cmdline(seq):
Exception: subprocess.CalledProcessError: Command 'sed -e 's:^[^/]*/:/projects/poky/build/tmp/work/all-poky-linux/update-rc.d/0.7-r5/recipe-sysroot-native/:g' /projects/poky/build/tmp/sysroots-components/x86_64/quilt-native/fixmepath | xargs sed -i -e 's:FIXMESTAGINGDIRTARGET:/projects/poky/build/tmp/work/all-poky-linux/update-rc.d/0.7-r5/recipe-sysroot:g; s:FIXMESTAGINGDIRHOST:/projects/poky/build/tmp/work/all-poky-linux/update-rc.d/0.7-r5/recipe-sysroot-native:g' -e 's:FIXME_COMPONENTS_DIR:/projects/poky/build/tmp/sysroots-components:g' -e 's:FIXME_HOSTTOOLS_DIR:/projects/poky/build/tmp/hosttools:g' -e 's:FIXME_PKGDATA_DIR:/projects/poky/build/tmp/pkgdata/qemux86:g' -e 's:FIXME_PSEUDO_LOCALSTATEDIR:/projects/poky/build/tmp/work/all-poky-linux/update-rc.d/0.7-r5/pseudo/:g' -e 's:FIXME_LOGFIFO:/projects/poky/build/tmp/work/all-poky-linux/update-rc.d/0.7-r5/temp/fifo.10395:g'' returned non-zero exit status 127.

Subprocess output:
/bin/sh: sed: command not found
/bin/sh: xargs: command not found

ERROR: update-rc.d-0.7-r5 do_install: Function failed: extend_recipe_sysroot