Why does installation of rhcos-4.3.8-x86_64-vmware fail with error "failed to fetch config, config is not valid" ?

Issue

• While trying to install rhcos-4.3.8-x86_64-vmware, it fails to read the ignition stating that it's invalid,
  whereas the same ignition works with rhcos-4.3.0-x86_64-vmware. without any changes.
• The upgrade works as expected. Issues only with installation.
• The serial logs are as follows.

[    4.868815] ignition[734]: Ignition 0.34.0
[    4.871996] vmxnet3 0000:0b:00.0 ens192: NIC Link is Up 10000 Mbps
[    FAILED    ] Failed to start Ignition (fetch).
See 'systemctl status ignition-fetch.service' for details.
[   DEPEND    ] Dependency failed for Ignition Complete.
[    4.876191] systemd[1]: ignition-fetch.service: Main process exited, code=exited, status=1/FAILURE
[    4.878602] ignition[734]: Stage: fetch
[   DEPEND    ] Dependency failed for Initrd Default Target.
[    4.879989] systemd[1]: ignition-fetch.service: Failed with result 'exit-code'.
[    OK    ] Stopped target Initrd Root Device.
[    4.883120] ignition[734]: reading system config file "/usr/lib/ignition/base.ign"
[    4.885407] systemd[1]: Failed to start Ignition (fetch).
[    OK    ] Stopped target Timers.
[    OK    ] Stopped Ask OSTree to mount /var in initramfs.
[    OK    ] Stopped target Basic System.
[    4.888876] systemd[1]: Dependency failed for Ignition Complete.

[    4.890639] systemd[1]: Dependency failed for Initrd Default Target.
[    OK    ] Stopped target System Initialization.
[    4.892468] ignition[734]: no config URL provided

[    OK    ] Stopped target Swap.
[    4.894428] systemd[1]: initrd.target: Job initrd.target/start failed with result 'dependency'.

[    OK    ] Stopped target Local Encrypted Volumes.
[    4.898147] ignition[734]: reading system config file "/usr/lib/ignition/user.ign"
[    4.031404] systemd[1]: Started Ask OSTree to mount /var in initramfs.
[    OK    ] Started Ask OSTree to mount /var in initramfs.
[    4.050564] ignition[576]: Ignition 0.34.0
[    4.051757] ignition[576]: Stage: fetch
[    4.052827] ignition[576]: reading system config file "/usr/lib/ignition/base.ign"
[    4.055411] ignition[576]: no config URL provided
[    4.056646] ignition[576]: reading system config file "/usr/lib/ignition/user.ign"
[    FAILED    ] Failed to start Populate OSTree /var.
[    4.058814] ignition-ostree-populate-var[570]: cp: cannot stat '/sysroot/etc/skel/.bash*': No such file or directory
[    4.061435] systemd[1]: ignition-ostree-populate-var.service: Main process exited, code=exited, status=1/FAILURE
See 'systemctl status ignition-ostree-populate-var.service' for details.
[    4.065020] ignition[576]: no config at "/usr/lib/ignition/user.ign"
[    4.066692] systemd[1]: ignition-ostree-populate-var.service: Failed with result 'exit-code'.
[    4.069066] systemd[1]: Failed to start Populate OSTree /var.
[    4.070558] ignition[576]: error at line 1, column 1
[    4.070558] invalid character 'e' looking for beginning of value
[    4.072942] ignition[576]: failed to fetch config: config is not valid
[    FAILED    ] Failed to start Ignition (fetch).
See 'systemctl status ignition-fetch.service' for details.

[    4.074370] systemd[1]: ignition-fetch.service: Main process exited, code=exited, status=1/FAILURE]] 
[    4.076309] ignition[576]: failed to acquire config: config is not valid
[    4.077716] systemd[1]: ignition-fetch.service: Failed with result 'exit-code'.
See 'systemctl status ignition-fetch.service' for details.
    Starting Check for FIPS mode...
[    4.091144] ignition[576]: Ignition failed: config is not valid
[    4.092547] systemd[1]: Failed to start Ignition (fetch).
[    4.093843] systemd[1]: Starting Check for FIPS mode...
[    4.102288] systemd[1]: Received SIGINT.

• Below parameters are set appropriately as well.

guestinfo.ignition.config.data
guestinfo.ignition.config.data.encoding
guestinfo.ignition.config.encoding