Dnf/Yum throws 500 internal server error while installing packages on the host registered to an external capsule server

Issue

• Any Dnf/Yum install/update command failed with a 500 Internal Server error as below:

  # dnf -v install foo
  [MIRROR] foo.1.0.1-1.el8.noarch.rpm: Status code: 500 for https://capsule.example.com/pulp/repos/my_org/my_env/my_content_view/content/dist/rhel8/8/x86_64/appstream/os/Packages/f/foo.1.0.1-1.el8.noarch.rpm (IP: XX.XX.XX.XX)
  [FAILED] foo.1.0.1-1.el8.noarch.rpm: No more mirrors to try - All mirrors were already tried without success
  

• The error can also be:

  https://capsule.example.com/pulp/content/ORG/LCE/CV/content/els/rhel/server/7/7Server/x86_64/os/Packages/m/myrpm.el7.noarch.rpm: [Errno 14] HTTPS Error 500 - Internal Server Error
  

  The issue is only visible for the systems connected with an external capsule server.