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In one pass without xargs (tested with an old GNU find):

find /usr/local/apache/htdocs \
\( -user apache -group apache -o -exec chown apache:apache {} + \) \
\( -type d ! -perm 755 -exec...

Run the git-update-server-info without exec

It's the old "it works for me" thing :) - but I didn't use the -print0 option (because AIX find doesn't support it!)

I don't know just how old your xargs is, but try either using -n1 with it, or...