admin password set at first login after autoinstall is not persisted across reboot

Solution In Progress - Updated -

Issue

We use the autoinstall method to install our RHEV hypervisors. The autoinstall uses the "adminpw" kernel parameter to set and initial password for the admin user. User is forced to change this password at first login.
This new password works until the hypervisor is rebooted whereby it returns to be the initial password set at autoinstall.
It would appear that the new password is not being persisted in /etc/shadow

Environment

  • Red Hat Enterprise Virtualization (RHEV) Hypervisor version 20151129

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