Just want to add that I've found the problem, in case anyone is curious. It 
was a line that I added to the .dockerignore file. I'm not sure why. It has 
an interesting and potentially very expensive (due to 10 minute penalty for 
creating an instance) effect. Instances keep getting created and deleted 
every 1-2 minutes perpetually, until the module is manually deleted.

$ cat vm/.dockerignore 
.dockerignore
Dockerfile
app.yaml

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