Today I installed the same nightly tree (RHEL-6.6-20140808.n.0) and the same architecture (x86_64) in my KVM via VIrtual Manager and everything went fine. Which variant and which installed method did you use?

 * variant: Server, package set: minimal install, network install via HTTP protocol

Server and picked up Basic server installation.

I have just triggered the same problem on a system on which I just installed CentOS 6.6/i386.
If I am not mistaken it appears when anaconda tries to install selinux-policy-targeted prior to installing libselinux-utils. In my case I see:
[root@pc70 ~]# grep selinux *log
install.log:Installing libselinux-2.0.94-5.8.el6.i686
install.log:Installing selinux-policy-3.7.19-260.el6.noarch
install.log:Installing selinux-policy-targeted-3.7.19-260.el6.noarch
install.log:/var/tmp/rpm-tmp.ZBc767: line 7: selinuxenabled: command not found
install.log:Installing libselinux-python-2.0.94-5.8.el6.i686                  
install.log:Installing libselinux-utils-2.0.94-5.8.el6.i686     

The result of the above sequence is that the *selinux packages are installed but /etc/selinux/targeted/policy/policy.24 is not created.
rpm -ql selinux-policy-targeted  lists this file but it is ghosted so its presence ( or absence ) can not be verified with rpm -V, one needs to use ls to verify. In my case, the directory /etc/selinux/targeted/policy was completely empty.

The end result is that after reboot the system either boots with selinux disabled (!!! - happens here with kernel-2.6.32-504.el6.x86_64 ) or panics at boot as described at https://bugzilla.redhat.com/show_bug.cgi?id=1128073#c0

I strongly suspect that https://bugzilla.redhat.com/show_bug.cgi?id=731621 describes the same problem and the presence/absence of swap was not the real culprit.

If I am not mistaken the solution is to make sure that selinux-policy-targeted has Requires(pre): libselinux-utils

Very interesting situation. I agree with your analysis, Manuel.

Are we able to re-shuffle the list of packages to be installed? Is it possible that policycoreutils package gets installed after selinux-policy-targeted package?

We'll that could be solved by proper dependency settings between rpms. I'm not aware of any other method.

This morning I've hit this problem again while installing a different system, with a different kickstart. I've digged a bit deeper and it seems that the ordering is even more complicated. 
In its %postinstall, selinux-policy-targeted does:
if [ $1 -eq 1 ]; then                                                            
                                                                                 
. /etc/selinux/config;                                                           
( cd /usr/share/selinux/targeted;
semodule -n -r oracle-port -b base.pp.bz2 -i $packages -s targeted 2>&1 | grep -v "oracle-port";
[ "${SELINUXTYPE}" == "targeted" ] && selinuxenabled && load_policy;
);   restorecon -R /root /var/log /var/run 2> /dev/null
else
   semodule -n -s targeted -r moilscanner -r mailscanner -r gamin -r audio_entropy -r iscsid -r polkit_auth -r polkit -r rtkit_daemon -r ModemManager -r telepathysofiasip -r passanger -r rgmanager -r aisexec -r corosync -r pacemaker -r amavis -r clamav -r glusterfs 2>/dev/null


 As you can see, the scriptlet relies on the presence of semodule ( a binary provided by policycoreutils )  and selinuxenabled ( provided by libselinux-utils ). Unfortunately the ordering during install does not seem to be guaranteed because in my install.log I see:
[root@pc65 ~]# grep -n "policycore\|selinux" install.log
60:Installing libselinux-2.0.94-5.8.el6.x86_64
641:Installing selinux-policy-3.7.19-260.el6.noarch
673:Installing libselinux-python-2.0.94-5.8.el6.x86_64
893:Installing selinux-policy-targeted-3.7.19-260.el6.noarch
894:/var/tmp/rpm-tmp.1dbDfR: line 7: selinuxenabled: command not found
935:Installing libselinux-utils-2.0.94-5.8.el6.x86_64
972:Installing libselinux-2.0.94-5.8.el6.i686
1058:Installing policycoreutils-2.0.83-19.47.el6_6.1.x86_64

 In addition the problems was worsened ( in my case ) by kernel-504 booting but with selinux disabled (!) leaving to a false feeling of "all is well" while in fact the system was in very bad shape.

Hi,

I also ran into this problem while setup a virtual machine (KVM) via Cobbler/kickstart.

25:Installing libselinux-2.0.94-5.8.el6.x86_64
117:Installing selinux-policy-3.7.19-260.el6.noarch
179:Installing selinux-policy-targeted-3.7.19-260.el6.noarch
180:/var/tmp/rpm-tmp.tc3D1v: line 7: selinuxenabled: command not found
195:Installing libselinux-utils-2.0.94-5.8.el6.x86_64
250:Installing policycoreutils-2.0.83-19.47.el6_6.1.x86_64

I use:
%packages --nobase
@Core
for my basic server installation.

Is there a workaround for this issue?

-- Robert

Given that by the time the %post part of the kickstart is executed, the needed binary (i.e. semodule ) is in place, until an official fix comes out I've temporarily added

   yum -y reinstall selinux-policy-targeted

to the %post section of my kickstart recipes.
Alternatively you can just rerun the %postinstall scriptlet from this rpm.

Is this still reproducible somehow? RHEL-6.6-20140808.n.0 is not available any more. I tried to install RHEL-6.6-20140812.1 and everything works fine for me.

Because I didn't get information I requested 3 months ago (comment 11), I am closing this bug. Feel free to reopen this bug but provide requested information.

The problem just occurred to a user from the #centos channel while installing the CentOS-6.7 minimal image

Hello, I am the user who reported the issue Manuel is talking about in the comment above.

I'm using the RHEL 6.7 x64 binary DVD (downloaded today; from the website it reports the last modified date is "2015-07-22"). I can reproduce the same issue also with CentOS 6.7 too.

My environment is VirtualBox 5.0.12, running on Windows 10 x64 and Mac OSX 10.11.2 x64. The VM has assigned 1 vCPU and 1 GB of RAM.

Also, I'm installing the minimal RHEL 6.7 system, with no extra packages.

If during the installation I use the default partition layout (which uses LVM), the OS installs and then boots correctly.

However, when I try to use a custom partition layout - as I cannot use LVM - the installation succeeds but the OS crashes at boot with the error above. The partition layout that I use is:
- /dev/sda1: /boot 600MB ext4
- /dev/sdb1: / 7.4GB ext4
Both partitions are standard, and the bootloader is installed on /dev/sda. There's no swap partition intentionally. I can get the OS to boot successfully if I use "selinux=0" in Grub; with the default configuration (as freshly installed by Anaconda), however, the OS crashes at boot with the kernel panic above.

Following the steps above will make the bug happen 100% of times.

Aside from the partition layout used, in Anaconda I'm using the default values almost always. Exceptions: en_US locale but Italian keyboard layout, and Etc/UTC as timezone.

Also, please note that a similar configuration with RHEL 7.2 is not giving me any issue.

Actually, I just performed another test. It seems that the issue is the lack of a swap partition: if I add a swap partition to my custom layout, the system will boot. However, I must not use swap in my system.

Last findings. With 4GB of memory the system boots. I guess my VM was just low on RAM. Apologize for this, it's probably a different bug.