IPA - Sudo rules are not working on RHEL-7.1

Solution In Progress - Updated -

Issue

Any sudo policy rules defined for any server always fail.
IPA users are not able to use sudo. When running sudo commands on ipa client, it shows the error

User <username> is not allowed to run sudo on <hostname>

Debug log shows:

[sssd[sudo]] [sudosrv_get_sudorules_from_cache] (0x0400): Returning 0 rules for [<username>@<ipa.domain>]

Environment

Red Hat Enterprise Linux 7.1
IPA v4.2
sssd-ipa-1.13

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