RHEL 8 installation fails with "TransactionCheckError: /bin/sh is needed by fapolicyd-1.0-3.el8_3.2.x86_64"

Issue

Installations pulling from the CDN or from local repos that include fapolicyd-1.0-3.el8_3.2.x86_64, fail with:

18:31:53,106 CRT exception: Traceback (most recent call last):
  File "/usr/lib64/python3.6/site-packages/pyanaconda/threading.py", line 280, in run
    threading.Thread.run(self)
  File "/usr/lib64/python3.6/threading.py", line 864, in run
    self._target(*self._args, **self._kwargs)
  File "/usr/lib64/python3.6/site-packages/pyanaconda/installation.py", line 394, in run_installation
    queue.start()
  File "/usr/lib64/python3.6/site-packages/pyanaconda/installation_tasks.py", line 311, in start
    item.start()
  File "/usr/lib64/python3.6/site-packages/pyanaconda/installation_tasks.py", line 311, in start
    item.start()
  File "/usr/lib64/python3.6/site-packages/pyanaconda/installation_tasks.py", line 311, in start
    item.start()
  File "/usr/lib64/python3.6/site-packages/pyanaconda/installation_tasks.py", line 490, in start
    self.run_task()
  File "/usr/lib64/python3.6/site-packages/pyanaconda/installation_tasks.py", line 456, in run_task
    self._task(*self._task_args, **self._task_kwargs)
  File "/usr/lib64/python3.6/site-packages/pyanaconda/payload/dnf/payload.py", line 1417, in install
    raise PayloadError(msg)
pyanaconda.payload.errors.PayloadError: Payload error - DNF installation has ended up abruptly: /bin/sh is needed by fapolicyd-1.0-3.el8_3.2.x86_64Traceback (most recent call last):