openssh does not honor group membership in chroot environment after upgrade to RHEL 7.3

Solution In Progress - Updated -

Issue

After update to openssh-server-6.6.1p1-31.el7 as a part of RHEL 7.3 upgrade, sftp stopped to follow group membership in chrooted environment.

Environment

RHEL 7.3
openssh-server-6.6.1p1-31.el7

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