Unable to update flatpak package and it failed with "error: Plugin selinux: hook fsm_file_prepare failed"

Issue

• During system update the flatpack package failed to upgrade with below error.
  • error: Plugin selinux: hook fsm_file_prepare failed.
• Same issue gets reproducible even after uninstalling existing flatpak package and re-installing it.

Error unpacking rpm package flatpak-1.10.7-1.el9.x86_64
  Upgrading        : python3-libcomps-0.1.18-1.el9.x86_64                                               320/902 
error: unpacking of archive failed on file /usr/libexec/flatpak-system-helper;61fe3cc4: cpio: (error 0x2)
error: flatpak-1.10.7-1.el9.x86_64: install failed

*****
Running transaction
  Preparing        :                                                                                        1/1 
  Running scriptlet: flatpak-1.10.7-1.el9.x86_64                                                            1/2 
  Upgrading        : flatpak-1.10.7-1.el9.x86_64                                                            1/2 
error: lsetfilecon: (/usr/libexec/flatpak-system-helper;61fea86c, system_u:object_r:flatpak_helper_exec_t:s0) Invalid argument
error: Plugin selinux: hook fsm_file_prepare failed

Failed:
  flatpak-1.10.2-6.el9.x86_64                            flatpak-1.10.7-1.el9.x86_64                           

Error: Transaction failed