Unable to upgrade Atomic Host 7.4.2 which has been deployed from Satellite 6

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Issue

Not able to upgrade Atomic Host 7.4.2 when deployed from Satellite 6.2.12

When tying to run atomic host upgrade the following error message is shown:

error: /install/ostree: opendir(/install/ostree): No such file or directory

Environment

Red Hat Enterprise Linux Atomic Host (RHEL) 7.4.2
Satellite 6.2.12

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