Not able to pass keyboard layout option to Xephyr after update to Red Hat Enterprise Linux 6.4

Issue

• Not able to pass keyboard layout option to Xephyr after update to rhel6.4
• Xephyr is not able to parse options provided with -kebd switch.

Xephyr -ac -keybd ephyr,,,xkbmodel=pc105,xkblayout=fr :1 &
DISPLAY=:1 xterm

• keyboard layout option passed with Xephyr -keybd option is not assigned.
• Below messages are observed on console.

Kbd option key () of value ((null)) not assigned!
Kbd option key (xkbmodel=) of value (pc105) not assigned!
Kbd option key (xkblayout=) of value (fr) not assigned!