Unable to add organization to a user via Hammer

Solution Verified - Updated -

Issue

When trying to assign an organization to a user via Hammer

#hammer organization add-user --id 1 --user "testuser"

it fails with the following message:

Could not associate the user:
  Locations you cannot remove locations that are used by hosts or inherited.

or similar (for example, concerning domains).

However, doing the same with WebUI works.

Environment

Red Hat Satellite 6

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