DNF does not recognize new python2 and pygtk2 packages

I am attempting to maintain an offline ISO for RHEL 8.7. The system this ISO will be used to deploy will operate in a disconnected environment and requires python2 and pygtk2 to operate. python2.7.18-11 and pygtk2 2.24.0-24 work fine, when I update the ISO repo to python2.7.18-17 and pygtk2 2.24.0.25 the OS deployment states the packages do not exist. When I access the console during deployment dnf (when pointed at the mounted repo) does not identify these new packages, but it does identify the other 80+ packages I updated. After deployment, dnf continues to not recognize these specific packages but rpm -Uvh will install all updated packages as needed. dnf will install the new packages after install if i set module_hotfixes=1 using -setopt=localrepo.module_hotfixes=1.
What can I do to figure out why dnf does not recognize these? How can I get the kickstart process to properly install these packages. I have tried to set hotfixes=1 in the ks.cfg file but have been unsuccessful.

Of note, I validated the metadata in the repodata folder and it is accurate. Other new packages are recongnized and install as expected.