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Workaround:

Description: Check below lines, question says not to include cloud-init but list of packages say not include Plymouth.

Change the packages that are installed to include httpd, but not cloud-init.
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Simplify the package specification to look like the following:
@core
chrony
dracut-config-generic
dracut-norescue
firewalld
grub2
kernel
rsync
tar
httpd
-plymouth