Why "atomic host upgrade" results in the error "openat: No such file or directory" in RHEL Atomic Host 7.4 ?

Solution Unverified - Updated -

Issue

Why "atomic host upgrade" results in the error "openat: No such file or directory" in RHEL Atomic Host 7.4 ?

[root@XXXX ~]# atomic host upgrade
error: /install/ostree: openat: No such file or directory

Environment

RHEL Atomic Host 7.4
Atomic host registered to Satellite 6.2

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