after it failed was there a config.log in tmp/build/retroarch – that might give a clue.
I’m unable to reproduce it here, but it can’t find your c compiler for whatever reason – so something is wrong with your image. Have you adjusted the system in any way ? You changed your hostname at least I see.
It might just be worth trying with a fresh image, but if there is anything further in config.log I can try and advise.