rhncfg-client fails with traceback message, "Exception: failed to set selinux context on "

Issue

• rhncfg-client fails on the %post installation of kickstart with the traceback like this.

Traceback (most recent call last):
  File "/usr/bin/rhncfg-client", line 34, in ?
    sys.exit(Main().main() or 0)
  File "/usr/share/rhn/config_common/rhn_main.py", line 187, in main
    handler.run()
  File "/usr/share/rhn/config_client/rhncfgcli_get.py", line 62, in run
    dep_trans.add_preprocessed(path, processed_path, file_info, dirs_created)
  File "/usr/share/rhn/config_common/transactions.py", line 181, in
add_preprocessed
    self._chown_chmod_chcon(processed_file_path, dest_path, file_info,
strict_ownership=strict_ownership)
  File "/usr/share/rhn/config_common/transactions.py", line 151, in
_chown_chmod_chcon
    raise Exception("failed to set selinux context on %s" % dest_path)
Exception: failed to set selinux context on /bin/gone

• SELinux is enabled