cloud-init partially fails with SELinux in enforced mode

Solution Verified - Updated -

Issue

  • We do face an issue with RHEL 7 using cloud-init. When SELinux is set to enforcing mode applying cloud-init settings fail.
  • On RHEL 7 it seems that cloud-init only applies network interfaces. But for example hostname and root password is not applied.
  • cloud-init works fine when SELinux is set to permissive mode or disabled.

Environment

  • Red Hat Enterprise Linux 7 (RHEL)

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