virt-sysprep isn't calling guestfs_set_network (g, true), so there
is no network access.

Should be a simple fix, looking at it now.

Patch posted:
https://www.redhat.com/archives/libguestfs/2016-June/msg00056.html

Hello out there I'm kind of new to these as to I am seeking to get better results to this.  So here goes nothing.
Moe

Tested with the packages:
libguestfs-1.32.5-6.el7.x86_64

Steps:
1. Prepare an rhel7 image:  RHEL-Server-7.2-64-hvm.raw
2. Use virt-sysprep --install to install package:
-----------------------------------------------------------
# virt-sysprep -a RHEL-Server-7.2-64-hvm.raw  --install pki-base
[   0.0] Examining the guest ...
[   3.2] Performing "abrt-data" ...
[   3.2] Performing "bash-history" ...
[   3.2] Performing "blkid-tab" ...
[   3.2] Performing "crash-data" ...
[   3.2] Performing "cron-spool" ...
[   3.2] Performing "dhcp-client-state" ...
[   3.2] Performing "dhcp-server-state" ...
[   3.2] Performing "dovecot-data" ...
[   3.2] Performing "logfiles" ...
[   3.2] Performing "machine-id" ...
[   3.2] Performing "mail-spool" ...
[   3.2] Performing "net-hostname" ...
[   3.2] Performing "net-hwaddr" ...
[   3.2] Performing "pacct-log" ...
[   3.2] Performing "package-manager-cache" ...
[   3.2] Performing "pam-data" ...
[   3.2] Performing "puppet-data-log" ...
[   3.2] Performing "rh-subscription-manager" ...
[   3.2] Performing "rhn-systemid" ...
[   3.2] Performing "rpm-db" ...
[   3.2] Performing "samba-db-log" ...
[   3.2] Performing "script" ...
[   3.2] Performing "smolt-uuid" ...
[   3.2] Performing "ssh-hostkeys" ...
[   3.2] Performing "ssh-userdir" ...
[   3.2] Performing "sssd-db-log" ...
[   3.2] Performing "tmp-files" ...
[   3.2] Performing "udev-persistent-net" ...
[   3.2] Performing "utmp" ...
[   3.2] Performing "yum-uuid" ...
[   3.2] Performing "customize" ...
[   3.2] Setting a random seed
[   3.2] Installing packages: pki-base
Loaded plugins: langpacks, product-id, search-disabled-repos, subscription-
              : manager
This system is not registered to Red Hat Subscription Management. You can use subscription-manager to register.
http://download.englab.nay.redhat.com/pub/rhel/rel-eng/latest-RHEL-7/compose/Server/x86_64/os/repodata/repomd.xml: [Errno 14] curl#6 - "Could not resolve host: download.englab.nay.redhat.com; Unknown error"
Trying other mirror.


 One of the configured repositories failed (rhel7.2),
 and yum doesn't have enough cached data to continue. At this point the only
 safe thing yum can do is fail. There are a few ways to work "fix" this:

     1. Contact the upstream for the repository and get them to fix the problem.

     2. Reconfigure the baseurl/etc. for the repository, to point to a working
        upstream. This is most often useful if you are using a newer
        distribution release than is supported by the repository (and the
        packages for the previous distribution release still work).

     3. Disable the repository, so yum won't use it by default. Yum will then
        just ignore the repository until you permanently enable it again or use
        --enablerepo for temporary usage:

            yum-config-manager --disable rhel7

     4. Configure the failing repository to be skipped, if it is unavailable.
        Note that yum will try to contact the repo. when it runs most commands,
        so will have to try and fail each time (and thus. yum will be be much
        slower). If it is a very temporary problem though, this is often a nice
        compromise:

            yum-config-manager --save --setopt=rhel7.skip_if_unavailable=true

failure: repodata/repomd.xml from rhel7: [Errno 256] No more mirrors to try.
http://download.englab.nay.redhat.com/pub/rhel/rel-eng/latest-RHEL-7/compose/Server/x86_64/os/repodata/repomd.xml: [Errno 14] curl#6 - "Could not resolve host: download.englab.nay.redhat.com; Unknown error"

virt-sysprep: warning: the command may have failed because the network is 
disabled.  Try either removing '--no-network' or adding '--network' on the 
command line.

virt-sysprep: error: yum -y install 'pki-base': command exited with an 
error

If reporting bugs, run virt-sysprep with debugging enabled and include the 
complete output:

  virt-sysprep -v -x [...]
---------------------------------------------------


The error is still there.

You need to add the --network option, as described in the manual:

       --network
       --no-network
           Enable or disable network access from the guest during the
           installation.

           In virt-sysprep, the network is disabled by default.  You must use
           --network to enable it, in order that options such as --install or
           --update will work.

           virt-builder(1) has more information about the security advantages
           of disabling the network.

Verified with the packages:
libguestfs-1.32.5-6.el7.x86_64

Verify steps:
1. Prepare an rhel7 image:  RHEL-Server-7.2-64-hvm.raw
2. Use virt-sysprep --install to install package:
# virt-sysprep -a RHEL-Server-7.2-64-hvm.raw  --install pki-base --network
# guestfish -a RHEL-Server-7.2-64-hvm.raw -i sh 'rpm -qa |grep -i pki-base'
pki-base-10.2.5-6.el7.noarch


The commands finished successfully and there is pki-base package installed.

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://rhn.redhat.com/errata/RHSA-2016-2576.html