3.18 Unable to create Oracle Linux 7 LXC containers on NFS

The creation of Oracle Linux 7 containers fail when the root file system (/container) is hosted on an NFS share. RPM fails to set capabilities while attempting to install some packages. For instance, when attempting to create an Oracle Linux 7 update 2 container, the installation fails while installing the iputils package:

Error unpacking rpm package iputils-20121221-7.el7.x86_64
error: unpacking of archive failed on file /usr/bin/ping: cpio: cap_set_file
error: iputils-20121221-7.el7.x86_64: install failed

Similar issues are seen when attempting to install the initscripts and systemd packages while creating an Oracle Linux 7 update 1 container.

This issue occurs on both NFSv3 and NFSv4.

Oracle Linux 6 containers are unaffected.

(Bug ID 25024258)