Undercloud installation fails with: Dependency Exec[/sbin/setenforce 1] has failures: true

Issue

The undercloud installation fails with the folloing error in /home/stack/.instack/install-undercloud.log

2017-02-14 13:58:44,738 INFO: 2017-02-14 13:58:44 - Notice: /Stage[main]/Tripleo::Selinux/Exec[/sbin/setenforce 1]/returns: /sbin/setenforce: SELinux is disabled
2017-02-14 13:58:44,740 INFO: 2017-02-14 13:58:44 - Error: /sbin/setenforce 1 returned 1 instead of one of [0]
2017-02-14 13:58:44,741 INFO: 2017-02-14 13:58:44 - Error: /Stage[main]/Tripleo::Selinux/Exec[/sbin/setenforce 1]/returns: change from notrun to 0 failed: /sbin/setenforce 1 returned 1 instead of one of [0]