Why systemd-sysctl fails to start on Red Hat Enterprise Linux Atomic Host ?

Issue

• Why systemd-sysctl fails to start on Red Hat Enterprise Linux Atomic Host ?
  Messages from logs

Jan 22 08:18:59 testlab systemd[1]: Starting Apply Kernel Variables...
Jan 22 08:18:59 testlab kernel: type=1400 audit(1516627139.582:14): avc:  denied  { sys_ptrace } for  pid=5730 comm="systemd-sysctl" capability=19  scontext=system_u:system_r:systemd_sysctl_t:s0 tcontext=syste
m_u:system_r:systemd_sysctl_t:s0 tclass=capability
Jan 22 08:18:59 testlab systemd-sysctl[5730]: Failed to write '0' to '/proc/sys/kernel/yama/ptrace_scope': Operation not permitted
Jan 22 08:18:59 testlab systemd[1]: systemd-sysctl.service: main process exited, code=exited, status=1/FAILURE
Jan 22 08:18:59 testlab systemd[1]: Failed to start Apply Kernel Variables.
Jan 22 08:18:59 testlab systemd[1]: Unit systemd-sysctl.service entered failed state.
Jan 22 08:18:59 testlab systemd[1]: systemd-sysctl.service failed.