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How reproducible:
always

Steps to Reproduce:

On a KVM virtual machine with two 8G virtual disks.

kickstart file fragment:

part raid.11 --size 500 --asprimary --ondrive=vda
part raid.21 --size 500 --asprimary --ondrive=vdb
raid /boot   --fstype xfs --device boot --level=RAID1 raid.11 raid.21

part raid.12 --size 1000 --grow --asprimary --ondrive=vda
part raid.22 --size 1000 --grow --asprimary --ondrive=vdb
raid pv.1   --fstype xfs --device pv.1 --level=RAID1 raid.12 raid.22
volgroup vg_system --pesize=131072 pv.1
logvol / --fstype=xfs --name=lv_root --vgname=vg_system --size 1000 --grow

Actual results:
# vgdisplay vg_cobbler-test | grep Size
  VG Size               7.50 GiB
  PE Size               128.00 MiB
  Alloc PE / Size       40 / 5.00 GiB
  Free  PE / Size       20 / 2.50 GiB


Expected results:

based on --grow option description in
https://access.redhat.com/documentation/en-US/Red_Hat_Enterprise_Linux/7/html/Installation_Guide/sect-kickstart-syntax.html logvol section:

--grow - Tells the logical volume to grow to fill available space (if any)

logical volume should allocate all available space in volume group

Additional info:

using --size with value more then allocated by --grow causes installer out of space on volume group error.

Reproduced on RHEL-7.2 GA, although "only" 1.25 GiB were not used:

[root@localhost ~]# vgdisplay vg_system | grep -i size
  VG Size               7.50 GiB
  PE Size               128.00 MiB
  Alloc PE / Size       50 / 6.25 GiB
  Free  PE / Size       10 / 1.25 GiB
[root@localhost ~]#

Installation logs will be attached

Created attachment 1145858 [details]
anaconda.log

Created attachment 1145859 [details]
program.log

Created attachment 1145860 [details]
storage.log

After evaluating this issue, there are no plans to address it further or fix it in an upcoming release.  Therefore, it is being closed.  If plans change such that this issue will be fixed in an upcoming release, then the bug can be reopened.