Currently both the services and service tenant are getting created on the undercloud and overcloud. We don't need both. We should consolidate on the "service" tenant only.
This bug did not make the OSP 8.0 release. It is being deferred to OSP 10.
I checked the code and I'm not sure this is still a bug. It seems to be fixed for 11 but it may already be addressed in 10 or earlier.