yum update fails with "groupadd: unable to open group file"

Solution Verified - Updated -

Issue

  • yum update fails with error messages below:
Running Transaction
groupadd: unable to open group file
Error in PREIN scriptlet in rpm package <pkg_name>
error: %pre(<pkg_name) scriptlet failed, exit status 10
error:   install: %pre scriptlet failed (2), skipping <pkg_name>

Environment

  • Red Hat Enterprise Linux 5

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