yum/rpm update setup fails with error: unpacking of archive failed on file /etc/shadow.rpmnew: cpio: rename

Issue

• Attempting to update some packages fails with cpio: rename errors, e.g.:

  # yum update
  . . .
  Resolving Dependencies
  --> Running transaction check
  ---> Package setup.noarch 0:2.8.71-9.el7 will be updated
  ---> Package setup.noarch 0:2.8.71-10.el7 will be an update
  --> Finished Dependency Resolution
  
  Dependencies Resolved
  =====================================================================================================
  Package        Arch          Version           Repository              Size
  =====================================================================================================
  Updating:
     setup        noarch      2.8.71-10.el7        rhel-7-server-rpms        166 k
  
  Transaction Summary
  =====================================================================================================
  Upgrade  1 Package
  
  Total download size: 166 k
  Is this ok [y/d/N]: y
  Downloading packages:
  setup-2.8.71-10.el7.noarch.rpm                                                                                                                   | 166 kB  00:00:01
  Running transaction check
  Running transaction test
  Transaction test succeeded
  Running transaction
   Updating   : setup-2.8.71-10.el7.noarch                                                                                                                           1/2
  Error unpacking rpm package setup-2.8.71-10.el7.noarch
  error: unpacking of archive failed on file /etc/shadow.rpmnew: cpio: rename
   Verifying  : setup-2.8.71-10.el7.noarch                                                                                                                           1/2
  setup-2.8.71-9.el7.noarch was supposed to be removed but is not!
   Verifying  : setup-2.8.71-9.el7.noarch                                                                                                                            2/2
  
  Failed:
   setup.noarch 0:2.8.71-9.el7                                                        setup.noarch 0:2.8.71-10.el7
  
  Complete!