Engine-setup fails after restoring backup of 3.5 engine that had dwhd connected to it

Solution Verified - Updated -

Issue

Engine-setup fails after restoring backup of 3.5 engine which was previously configured with dwhd or reports package.

Engine setup fails with following message:

[ ERROR ] dwhd is currently running. Its hostname is host.example.com. Please stop it before running Setup.
[ ERROR ] Failed to execute stage 'Transaction setup': dwhd is currently running

Environment

Red Hat Enterprise Virtualization (RHEV) - version 3.5

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