Why is RHEL 9 template failing to deploy in VMware with "Customization command failed with stderr: '/bin/cat: /etc/machine-id: No such file or directory" error?

Issue

• Why is RHEL 9 template failing to deploy in VMware with below errors in the log ?

  Renewing machine ID ...  
  DEBUG: Command: 'dbus-uuidgen --ensure=/etc/machine-id' 
  DEBUG: Exit Code: 72057594037927935 
  DEBUG: Result:  
  DEBUG: Command: '/bin/cat /etc/machine-id' 
  DEBUG: Exit Code: 1 
  ....
  ....
  INFO: New machine ID:  
  ....
  [   error] Customization command failed with stderr: '/bin/cat: /etc/machine-id: No such file or directory'.
  [   error] Customization process returned with error.
  [   debug] Deployment result = -1.
  [    info] Setting 'unknown' error status in vmx.
  [    info] Transitioning from state 'INPROGRESS' to state 'ERRORED'.
  [    info] ENTER STATE 'ERRORED'.