rhel7: installation fails with "Pane is dead" and "new value non-existent xfs filesystem is not valid as a default fs type"

Issue

• We are trying to provision a RHEL 7 beta system from our Red Hat Satellite 5.6 , and anaconda gives us the following error:

new value non-existent xfs filesystem is not valid as a default fs type

• Trying to deploy RHEL7 beta with virt-install the installer stops with this:

anaconda 19.31.48-1 for Red Hat Enterprise Linux 7.0 (pre-release) started.
Traceback (most recent call last):
  File "/sbin/anaconda", line 998, in <module>
    setupDisplay(anaconda, opts, addon_paths)
  File "/sbin/anaconda", line 605, in setupDisplay
    anaconda.initInterface(addon_paths)
  File "/usr/lib64/python2.7/site-packages/pyanaconda/__init__.py", line 205, in initInterface
    self._intf = GraphicalUserInterface(self.storage, self.payload,
  File "/usr/lib64/python2.7/site-packages/pyanaconda/__init__.py", line 164, in storage
    self._storage.setDefaultFSType(self.instClass.defaultFS)
  File "/usr/lib/python2.7/site-packages/blivet/__init__.py", line 1778, in setDefaultFSType
    raise ValueError("new value %s is not valid as a default fs type" % fmt)
ValueError: new value non-existent xfs filesystem is not valid as a default fs type

Pane is dead