According to the commit which introduced the package-index target[1] the Debian package feeds cannot be used on clients because important files on the target are missing. This should be figured out and fixed. 1. http://git.yoctoproject.org/cgit/cgit.cgi/poky/commit/?id=9fbd9b93aea780c8168f6de2692148b14dd9d6a7
Well the correct system files are now available on a system when deb and package-managment is enabled, it turns out that we don't have xz installed which is needed to decompress, need to add xz to the RDEPENDS.
http://git.yoctoproject.org/cgit/cgit.cgi/poky/commit/?id=d80472c4e3c8110bdc441a8d6f5b27d9c25c6432