Git pull fails with bad pack header error

The lines beginning with remote are output from git running on the remote system. The error:

fatal: unable to create thread: Resource temporarily unavailable

… strongly suggests that you’ve run out of memory on the server, which can happen if you have either:

1. A repository with lots of large files, which can cause re-packing to take a lot of memory.
2. Limited virtual memory – either in general, or just for that account due to the ulimit setting

A suggestion here is to limit the amount of memory that packing may take by logging into the remote system (as the user that git runs as) and doing:

git config --global pack.windowMemory "100m"
git config --global pack.packSizeLimit "100m"
git config --global pack.threads "1"