RHV-H update fails with error "mount: unknown filesystem type 'squashfs'"

Solution In Progress - Updated -

Issue

  • RHV-H update fails with error "mount: unknown filesystem type 'squashfs'"
  • RHV-H may reboot as if upgrade was successful, but just boot into the previous image

Environment

  • Red Hat Virtualization 4.x
  • OS hardening (disable squashfs module)

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