Tejas, Does this fail when dmcrypt_journal_collocation: false?
I believe I found a commit upstream that will resolve this problem. https://github.com/ceph/ceph-ansible/commit/f162db1202a050d363820fc838e7df41ff9ce3d8 That commit is also mentions fixing this BZ https://bugzilla.redhat.com/show_bug.cgi?id=1376283 In short, what's happening is that the 'fail if ceph-disk cannot create an OSD' task is not being properly skipped when ceph-ansible is skipping other tasks related to other OSD scenarios. This specific task throws a syntax error in 1.9.4 because the variable used in it's when clause is not defined.
I've pushed a wip-bz-1388885 branch downstream with that commit cherry-picked into it to use for testing.
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://access.redhat.com/errata/RHBA-2016:2817