Docker version has been updated to 1.13.1 in RHEL which is the cause of failure for RHEL ISO. This is happening because of updated version of RHEL/CentOS tree now also require /etc/docker/seccomp.json and since we are removing this directory and again put to bind mount this file is not present. Since /etc/docker only contain certs and config which doesn't need any persistence across reboot.
[docker@minishift ~]$ sudo journalctl -u docker
-- Logs begin at Tue 2018-03-13 01:51:08 EDT, end at Tue 2018-03-13 01:52:57 EDT. --
Mar 13 01:51:15 localhost systemd[1]: Starting Docker Application Container Engine...
Mar 13 01:51:16 localhost minishift-cert-gen[999]: tr: write error: Broken pipe
Mar 13 01:51:16 localhost minishift-cert-gen[999]: tr: write error
Mar 13 01:51:16 localhost minishift-cert-gen[999]: Generating RSA private key, 2048 bit long modulus
Mar 13 01:51:16 localhost minishift-cert-gen[999]: ..............................................................+++
Mar 13 01:51:16 localhost minishift-cert-gen[999]: ...........+++
Mar 13 01:51:16 localhost minishift-cert-gen[999]: e is 65537 (0x10001)
Mar 13 01:51:16 localhost minishift-cert-gen[999]: No value provided for Subject Attribute C, skipped
Mar 13 01:51:16 localhost minishift-cert-gen[999]: No value provided for Subject Attribute ST, skipped
Mar 13 01:51:16 localhost minishift-cert-gen[999]: No value provided for Subject Attribute L, skipped
Mar 13 01:51:16 localhost minishift-cert-gen[999]: No value provided for Subject Attribute O, skipped
Mar 13 01:51:16 localhost minishift-cert-gen[999]: No value provided for Subject Attribute OU, skipped
Mar 13 01:51:16 localhost minishift-cert-gen[999]: Generating RSA private key, 2048 bit long modulus
Mar 13 01:51:16 localhost minishift-cert-gen[999]: ...............+++
Mar 13 01:51:16 localhost minishift-cert-gen[999]: ..........+++
Mar 13 01:51:16 localhost minishift-cert-gen[999]: e is 65537 (0x10001)
Mar 13 01:51:16 localhost minishift-cert-gen[999]: Signature ok
Mar 13 01:51:16 localhost minishift-cert-gen[999]: subject=/CN=example.com
Mar 13 01:51:16 localhost minishift-cert-gen[999]: Getting CA Private Key
Mar 13 01:51:16 localhost minishift-cert-gen[999]: Generating RSA private key, 2048 bit long modulus
Mar 13 01:51:16 localhost minishift-cert-gen[999]: ..........+++
Mar 13 01:51:16 localhost minishift-cert-gen[999]: ...........................................................................................................................................
Mar 13 01:51:16 localhost minishift-cert-gen[999]: e is 65537 (0x10001)
Mar 13 01:51:16 localhost minishift-cert-gen[999]: Signature ok
Mar 13 01:51:16 localhost minishift-cert-gen[999]: subject=/CN=client
Mar 13 01:51:16 localhost minishift-cert-gen[999]: Getting CA Private Key
Mar 13 01:51:16 localhost minishift-cert-gen[999]: mode of '/etc/docker/ca.pem' changed from 0644 (rw-r--r--) to 0400 (r--------)
Mar 13 01:51:16 localhost minishift-cert-gen[999]: mode of '/etc/docker/server.pem' changed from 0644 (rw-r--r--) to 0400 (r--------)
Mar 13 01:51:16 localhost minishift-cert-gen[999]: mode of '/etc/docker/server-key.pem' changed from 0644 (rw-r--r--) to 0400 (r--------)
Mar 13 01:51:18 localhost dockerd-current[1082]: time="2018-03-13T01:51:18.065658471-04:00" level=info msg="libcontainerd: new containerd process, pid: 1088"
Mar 13 01:51:19 localhost dockerd-current[1082]: Error starting daemon: opening seccomp profile (/etc/docker/seccomp.json) failed: open /etc/docker/seccomp.json: no such file or directory
Mar 13 01:51:19 localhost systemd[1]: docker.service: main process exited, code=exited, status=1/FAILURE
Mar 13 01:51:19 localhost systemd[1]: Failed to start Docker Application Container Engine.
Mar 13 01:51:19 localhost systemd[1]: Unit docker.service entered failed state.
Mar 13 01:51:19 localhost systemd[1]: docker.service failed.
Docker version has been updated to 1.13.1 in RHEL which is the cause of failure for RHEL ISO. This is happening because of updated version of RHEL/CentOS tree now also require
/etc/docker/seccomp.json
and since we are removing this directory and again put to bind mount this file is not present. Since/etc/docker
only contain certs and config which doesn't need any persistence across reboot.