Oracle Linux 8 RPM installation broken

I got the following error message when attempting to upgrade RPM packages:

error: lsetfilecon: (-1 9f2db5eaa0dd9d1fed09bafdd4c59940c9715c;65cf0896, system_u:object_r:lib_t:s0) No such file or directory
error: Plugin selinux: hook fsm_file_prepare failed

Oracle Linux 8 introduced a bug with a package called rpm-plugin-selinux (details: rpm-plugin-selinux-4.14.3-28.0.1.el8_9) which prevents RPM packages from being installed correctly, either by dnf/yum or manually.

The solution, as shown in this Oracle community forum is to downgrade the package rpm-plugin-selinux like that:

rpm -e --nodeps rpm-plugin-selinux
dnf downgrade rpm
dnf install rpm-plugin-selinux-4.14.3-26.0.1.el8.x86_64

Following this action, a regular dnf update can take place without affecting the system any further.

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