Rebuild of initramfs image fails with dracut-install: ERROR: failed to install '/lib64/libselinux.so'

Issue

• dracut-install: ERROR: failed to install '/lib64/libselinux.so'
• Running dracut command to rebuild initramfs image fails:

# dracut -f -v initramfs-3.10.0-957.5.1.el7.x86_64.img 3.10.0-957.5.1.el7.x86_64
Executing: /sbin/dracut -f -v initramfs-3.10.0-957.5.1.el7.x86_64.img 3.10.0-957.5.1.el7.x86_64
*** Including module: bash ***
dracut-install: ERROR: failed to install '/lib64/libselinux.so' for '/bin/bash'
dracut-install: ERROR: installing '/bin/bash'
/usr/lib/dracut/dracut-install -D /var/tmp/dracut.tpPMRT/initramfs -l /bin/bash
*** Including module: nss-softokn ***
dracut-install: ERROR: failed to install '/lib64/libselinux.so' for '/lib64/libfreeblpriv3.so'
dracut-install: ERROR: installing '/lib64/libfreeblpriv3.so'
dracut-install: ERROR: failed to install '/lib64/libselinux.so' for '/lib64/libfreebl3.so'
dracut-install: ERROR: installing '/lib64/libfreebl3.so'
*** Including module: i18n ***
dracut-install: ERROR: failed to install '/lib64/libselinux.so' for '/usr/bin/setfont'
dracut-install: ERROR: installing 'setfont'
dracut-install: ERROR: failed to install '/lib64/libselinux.so' for '/usr/bin/loadkeys'
dracut-install: ERROR: installing 'loadkeys'
*** Including module: network ***
dracut-install: ERROR: failed to install '/lib64/libselinux.so' for '/usr/sbin/ip'
dracut-install: ERROR: installing 'ip'
dracut-install: ERROR: failed to install '/lib64/libselinux.so' for '/usr/sbin/arping'
dracut-install: ERROR: installing 'arping'
...