It appears that diskimage still has the tmp-sage-8.1-OSX_10.13.2_x86_64.app.dmg file open. You can find this with "sudo lsof |fgrep tmp-sage-8.1". Killing disk image allows the "hdiutil convert -format UDBZ -o sage-8.1-OSX_10.13.2_x86_64.app.dmg tmp-sage-8.1-OSX_10.13.2_x86_64.app.dmg" command to succeed.
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