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Essentially reopening BZ 1277227 (public comments from 1277227 pasted below):

--- Additional comment from Parikshit Khedekar on 2018-04-05 08:53:45 EDT ---

Hello,

Reopening the BugZilla as the issue is still faced in Red Hat Enterprise Linux 7.4 and 7.5 Beta as well.

The installation media of DVD RHEL7.4 doesn't include any file within /usr/lib/grub ( this directory is empty). For this reason, the command fails.

Reproducible as, enter in rescue mode from a RHEL7.4 DVD and try to execute the command, you will see that this folder is empty.

Another way to reproduce it is to mount the stage2 LiveOS/squashfs.img (anaconda installation) and verify that the /usr/lib/grub folder is empty.
But it does not recommend doing it.

--- Additional comment from Joseph Tingiris on 2018-08-12 16:12:55 EDT ---

This is still an issue, a regression from 7.1 that still exists.

I thought it was re-opened?

*** This bug has been marked as a duplicate of bug 1567018 ***