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I have not been able to reproduce this issue on my environment. I am testing with changes that will be coming in snap 13; therefore, it could be related to those changes or environmental or procedural differences. For now, I am going to triage this in, as we need to ensure the bug is resolved.
This issue appears only when we run "yum install satellite -y" before "yum update -y". Otherwise not reproducible. I'm closing this issue now because as per dev satellite package installed with yum update -y so no need to install satellite package before yum update. I will re-open if come across again with standard upgrade procedure.