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The rh-hosted.repo file that gets installed at /etc/yum.repos.d/rh-hosted.repo when the rh-rhua-config rpm gets installed is still pointing at the 1.1 rhui repo on the CDN instead of the 1.2 rhui repo.
We are marking this BZ as closed as RHUI 1.X is End of Life. For RHUI 2.x customers can follow the Admin Guide which describes how to upgrade the RHUI RPMs. https://access.redhat.com/site/documentation/en-US/Red_Hat_Update_Infrastructure/2.1/html/Administration_Guide/chap-Administration_Guide-Updating_Red_Hat_Update_Infrastructure.html