RHCOS has identified a number of improvements to the first boot experience that we wish to provided via a new set of boot images. The RHCOS build with these improvements has not been made yet, but this serves as the BZ that can be used to submit a PR to the installer. Additional BZs that will block this BZ will be made for the components in RHCOS that need to be updated before making the updated boot images.
Verify this bug with recent 4.7 nightly builds: 4.7.0-0.nightly-2020-12-12-100037, 4.7.0-0.nightly-2020-12-12-115457, 4.7.0-0.nightly-2020-12-13-031811. In QE's CI jobs, we can see successful installations on AWS/GCP/Azure/vSphere/OSP with the new boot RHCOS image - rhcos-47.83.202012030221-0.
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 (Moderate: OpenShift Container Platform 4.7.0 security, bug fix, and enhancement update), 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/RHSA-2020:5633