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The org.eclipse.pde.build bundle must be unpacked in order to function correctly but the MANIFEST.MF does not contain the directive: Eclipse-BundleShape: dir The current install relies on the fact that an "unpack" has been declared in a feature.xml. This leads to problems when the bundle is installed by other means then an explicit feature include. In my case, I had a requirement instead of an include.
Wrong wording in last comment. It's not the "install" that suffers, it's the p2 publisher. It will not add the needed touchpoint to unzip the bundle unless a BundleShapeAdvice is added. That only happens when a feature explicitly includes the bundle with unpack directive. I'm lowering the priority on this bug since very few people are likely to actually publish this bundle.
Added the EclipseBundleShape header in for 3.7