Hello,

If you go through your stack trace error, you'll see clearly that it mentions the Java heap space is mentioned:

Caused by: java.lang.OutOfMemoryError: Java heap space
C:\LabKey16.1-42836.12-src\server\build.xml:2040: The following error occurred while executing this line:
C:\LabKey16.1-42836.12-src\server\build.xml:1346: java.lang.OutOfMemoryError: Java heap space

You will need to increase the amount of memory for Java to use for Ant to create the artifacts from the source code.

Please refer to this link on StackOverflow for more details: http://stackoverflow.com/questions/36330540/increase-memory-for-ant

Regards,

Jon