Currently a defined source needs to be extracted in full on the same server as WPX is running on and the source path provided. This is a bit of a limitation given either a package ZIP or package ZIP URL is an equally valid source for updates that could be synced (such as WP SVN repo but also other non-WP release packages.) Github Repos are another valid source that could be handled this way also, saving the need to keep a local clone always synced (although that may be still preferable for private repos used for site version control etc.)
Currently a defined source needs to be extracted in full on the same server as WPX is running on and the source path provided. This is a bit of a limitation given either a package ZIP or package ZIP URL is an equally valid source for updates that could be synced (such as WP SVN repo but also other non-WP release packages.) Github Repos are another valid source that could be handled this way also, saving the need to keep a local clone always synced (although that may be still preferable for private repos used for site version control etc.)