Inability to log in as root user in single user mode when fips=1 is enabled

Solution Verified - Updated -

Issue

Root user is able to log in to multi-user environment but not in single user mode:

# init 1
...
Give root password for maintenance
(or type Control-D to continue): 
sulogin: crypt failed: Operation not permitted
Login incorrect

Environment

Red Hat Enterprise Linux 7

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