Comment # 17 on bug 1199520 from Johannes Segitz

I can reproduce it. On a system installed by your instructions SELinux labeling
is fully broken. When I run
transactional-update setup-selinux
it becomes a bit better, but it's still broken. Something is going wrong in the
way /etc, /var, /srv and /home are setup. 

I don't know enough about the special sauce in the transactional setup to
understand why and unfortunately my attempts to debug this from within initrd
don't work because for some reason the break keyword isn't honored on the
command line.

@Fabian: You have a lot more experience than I in this environment. Is there
documentation that describes how these overlay mounts are created in the
initrd?