Combining package customisation in packages.chroot and the '--apt-indices false' option result in no image being generated, (though a successful exit status). Using either on it's own works just fine.
[2021-09-24 11:11:26] lb chroot_apt install
P: Configuring file /etc/apt/apt.conf
[2021-09-24 11:11:26] lb chroot_archives binary install
P: Configuring file /etc/apt/sources.list
Reading package lists...
Building dependency tree...
Reading state information...
E: Unable to locate package squashfs-tools
E: An unexpected failure occurred, exiting...
P: Begin unmounting filesystems...
P: Saving caches...
which appears to in chroot_archives here:
https://salsa.debian.org/live-team/live-build/-/blob/master/scripts/build/chroot_archives#L190