SSSD service stops working after patching system to RHEL 7.8

Issue

• SSSD stopped working after patching RHEL system from RHEL 7.7 to RHEL 7.8
• SSSD service fails to start after upgrading sssd packages to sssd-1.16.4-37.el7_8.1.x86_64 giving an error:

Apr 15 03:04:41 rhel7test systemd[1]: Starting System Security Services Daemon...
Apr 15 03:04:41 rhel7test sssd[15646]: ldb: module version mismatch in ../modules/paged_results.c : ldb_version=1.5.4 module_version=1.4.2
Apr 15 03:04:41 rhel7test sssd[15646]: ldb: failed to initialise module /usr/lib64/ldb/modules/ldb/paged_results.so : Unavailable
Apr 15 03:04:41 rhel7test sssd[15646]: SSSD couldn't load the configuration database [5]: Input/output error.
Apr 15 03:04:41 rhel7test systemd[1]: sssd.service: main process exited, code=exited, status=4/NOPERMISSION
Apr 15 03:04:41 rhel7test systemd[1]: Failed to start System Security Services Daemon.
Apr 15 03:04:41 rhel7test systemd[1]: Unit sssd.service entered failed state.
Apr 15 03:04:41 rhel7test systemd[1]: sssd.service failed.