Tried several attempts to reproduce this issue on older build but it is not reproduced on downstream code.
On 3.12.2-16.el7rhgs, followed the steps mentioned in Comment 28 (mounted as nfs as root user and continued the remaining steps) and was able to access the file without any issues.
Also, done sanity check and ran non-root user scenarios and didn't find any issues.
Considering above, I am moving this BZ to Conditionally verified.
Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.
For information on the advisory, and where to find the updated
files, follow the link below.
If the solution does not work for you, open a new bug report.
https://access.redhat.com/errata/RHSA-2018:2607