ipa-replica-install fails with `Unknown error 256`

Issue

Installing an IdM replica throws an error like below:

# ipa-replica-install --setup-ca --mkhomedir --no-host-dns /var/lib/ipa/replica-info-replica.example.com.gpg
Directory Manager (existing master) password:

Warning: skipping DNS resolution of host replica.example.com
Warning: skipping DNS resolution of host master.example.com
Run connection check to master
admin@EXAMPLE.COM password:
Connection check OK
Configuring NTP daemon (ntpd)
  [1/4]: stopping ntpd
  [2/4]: writing configuration
  [3/4]: configuring ntpd to start on boot
  [4/4]: starting ntpd
Done configuring NTP daemon (ntpd).
Configuring directory server (dirsrv). Estimated time: 30 seconds
  [1/40]: creating directory server instance
  [error] RuntimeError: failed to create DS instance Command '/usr/sbin/setup-ds.pl --silent --logfile - -f /tmp/tmp2ltjvJ' returned non-zero exit status 1
Your system may be partly configured.
Run /usr/sbin/ipa-server-install --uninstall to clean up.

ipa.ipapython.install.cli.install_tool(CompatServerReplicaInstall): ERROR    failed to create DS instance Command '/usr/sbin/setup-ds.pl --silent --logfile - -f /tmp/tmp2ltjvJ' returned non-zero exit status 1
ipa.ipapython.install.cli.install_tool(CompatServerReplicaInstall): ERROR    The ipa-replica-install command failed. See /var/log/ipareplica-install.log for more information