Why does inplace upgrade to RHEL 8 fails dropping the system to emergency mode?

Solution Verified - Updated -

Issue

  • The Inplace upgrade from RHEL7 to RHEL8 fails with the upgrade initramfs and the system drop to emergency mode.
  • IOError: [Errno 1] Operation not permitted: '/etc/pam.d/system-auth'

Environment

  • Red Hat Enterprise Linux 7.
  • Red Hat Enterprise Linux 8.

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