engine-setup should configure yum's versionlock plugin to follow Obsoletes, so that if/when we rename locked packages, 'yum update' won't install the new ones, but let engine-setup do that.
after running engine-setup follow_obsoletes=1 is in /etc/yum/pluginconf.d/versionlock.conf verified in ovirt-engine-setup-4.2.2.1-0.1.el7.noarch
This bugzilla is included in oVirt 4.2.2 release, published on March 28th 2018. Since the problem described in this bug report should be resolved in oVirt 4.2.2 release, it has been closed with a resolution of CURRENT RELEASE. If the solution does not work for you, please open a new bug report.