I am also experiencing a similar issue working in LV2016. I wouldn't say that it is due to file sizes. I can build the exe to a local folder and the built app is <5Mb in size. If I try to build to a network location, the build never completes and the build status is stuck at "Building application..."
I can build an application from a different project in LV2016 to the network so I don't suspect the network is entirely the issue. I build LabVIEW apps to a network folder all the time.
The problem project has some lvlibs and xctl's in it. If anyone has an idea of what to look for, I'm nearing my wit's end too.