Yum shows 'error: unpacking of archive failed on file /path/to/file;6786377d: cpio: chmod' when installing a package

Issue

• When I want to update the systemd package, I get the following error:

  --> Running transaction check
  ---> Package systemd.x86_64 0:219-78.el7_9.7 will be updated
  ---> Package systemd.x86_64 0:219-78.el7_9.11 will be an update
  --> Finished Dependency Resolution
  [...]
  Running transaction test
  Transaction test succeeded
  Running transaction
  Updating   : systemd-219-78.el7_9.11.x86_64                                                                    1/2
  Error unpacking rpm package systemd-219-78.el7_9.11.x86_64
  error: unpacking of archive failed on file /etc/rc.d/rc.local;6786377d: cpio: chmod
  Loaded plugins: product-id, subscription-manager
  Verifying  : systemd-219-78.el7_9.11.x86_64                                                                    1/2
  systemd-219-78.el7_9.7.x86_64 was supposed to be removed but is not!
  Verifying  : systemd-219-78.el7_9.7.x86_64                                                                     2/2
  
  Failed:
  systemd.x86_64 0:219-78.el7_9.7                          systemd.x86_64 0:219-78.el7_9.11
  
  Complete!
  

• Have tried to reinstall the package, and a yum clean all but the issue persists.

• Have checked for immutable flag on files:

  # chattr -d /etc/rc.d/rc.local* 
  

  and there is no immutable flag set.