System cannot boot: Failed to load SELinux policy, freezing

Solution Verified - Updated -

Issue

  • After enabling SELinux, the system cannot boot any longer. These messages appear on the screen:
[  OK  ] Reached target Switch Root.
         Starting Switch Root...
[!!!!!!] Failed to load SELinux policy, freezing

and the booting process does not continue.
* Userspace SELinux utilities report errors like

<module>:ValueError: Failed to read //etc/selinux/targeted/policy/policy.31 policy file

Environment

Red Hat Enterprise Linux 7
selinux-policy-targeted

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