sendmail alias expansion not working in RHEL

Solution Verified - Updated -

Issue

When sending emails from a host, aliases in /etc/aliases are ignored.
If /etc/aliases contains:

root:     alerts@my.remotehost.com

Mail sent via this host for the aliased address (root in this example) actually ends up being delivered to the local account instead of the expanded alias (i.e. it goes to root instead of alerts@my.remotehost.com)

Environment

Red Hat Enterprise Linux - any version

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