Why 'NetworkManager-wait-online.service' fails to start with error 'code=exited, status=2/INVALIDARGUMENT' ?

Issue

• VLAN on top of team interface is configured using nmcli . Post configuration when server is rebooted, it hangs while starting the NetworkManager service and fails with below error.

    Jan  5 11:36:58 localhost nm-online: Error: Could not create NMClient object: Timeout was reached.
    Jan  5 11:36:58 localhost systemd: NetworkManager-wait-online.service: main process exited, code=exited, status=2/INVALIDARGUMENT
    Jan  5 11:36:58 localhost systemd: Failed to start Network Manager Wait Online.
    Jan  5 11:36:58 localhost systemd: Unit NetworkManager-wait-online.service entered failed state.
    Jan  5 11:36:58 localhost systemd: NetworkManager-wait-online.service failed.
    Jan  5 11:36:58 localhost systemd: Starting LSB: Bring up/down networking...
    Jan  5 11:41:58 localhost systemd: network.service start operation timed out. Terminating.
    Jan  5 11:41:58 localhost systemd: Failed to start LSB: Bring up/down networking.
    Jan  5 11:41:58 localhost systemd: Unit network.service entered failed state.
    Jan  5 11:41:58 localhost systemd: network.service failed.

• If NM_CONTROLLED=no is set, then same issue doesn't occur.
• This issue started after upgrading the kernel to newest RHEL 7.3 version kernel-3.10.0-514.2.2.el7 , booting the system with older kernel-3.10.0-327.el7 same issue is not seen and system boots UP fine.