kubernetes job tries to run locally on windows master, why?

This is a sample jenkinsfile i tried to use

pipeline {
  agent {
    kubernetes {
      cloud 'kub04'
      defaultContainer 'kaniko'
      yaml '''
        kind: Pod
        spec:
          containers:
            - name: kaniko
              image: gcr.io/kaniko-project/executor:v1.6.0-debug
              imagePullPolicy: Always
              tty: true
              command:
                - /busybox/sh
            - name: jnlp
              image:  jenkins/jnlp-slave:latest-jdk11
              tty: true
'''
    }
  }
  stages {
    stage('Build with Kaniko') {
      steps {
        container(name: 'kaniko') {
          sh '/kaniko/executor --help'
        }
      }
    }
  }
}

This is setup on jenkins running on Windows. What happens is - in the log - :

Running on testljpipeline-96-qt102-9sk88-qwr2q in /home/jenkins/agent/workspace/testljpipeline
[Pipeline] {
[Pipeline] container
[Pipeline] {
[Pipeline] stage
[Pipeline] { (Build with Kaniko)
[Pipeline] sh
sh: C:\Program Files\Git\bin\sh.exe: not found
[Pipeline] }
[Pipeline] // stage
[Pipeline] }
[Pipeline] // container
[Pipeline] }
[Pipeline] // node
[Pipeline] }
[Pipeline] // podTemplate
[Pipeline] End of Pipeline
ERROR: script returned exit code 127
Finished: FAILURE

Why? What is going on here? The pods get spawned on k8s, but jenkins insists on running any commands locally.

I also tried adding the container(name: 'kaniko') { } section around the sh step, but to no avail