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Description of problem:
Atomic Host needs a large rootfs size, backport support for this from upstream.

See more information in this ticket:

https://projects.engineering.redhat.com/browse/RCM-59083

This is the change: https://github.com/weldr/lorax/commit/37d36daa9c672e428e677a6a7bacea99cc16c5c4

Have reproduced it on RHEL-7.0 - lorax-19.6.28-1.el7.x86_64.rpm - this version doesn't know --rootfs-size parameter
on RHEL-7.7-20190606.1 lorax-19.7.25-1.el7 I was able to create squashfs of size 4GB (--rootfs-size=4 )
so marking it as verified

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-2019:2161