I actually managed to fix it.  The ovirt-engine package was still on version 4.1, after running yum update to upgrade everything to version 4.2 the engine-setup script was able to upgrade postgresql.

On Mon, Jun 11, 2018 at 4:31 PM, Michael Watters <wattersm@watters.ws> wrote:

After installing the ovirt 4.2 repository and running engine-setup the
upgrade script fails with an error as shown below.

[ ERROR ] Postgresql client version is '9.5.9', whereas the version on
'localhost' is '9.2.23'. Please use a PostgreSQL server of version '9.5.9'.
         Please note the following required changes in postgresql.conf
on 'localhost':
        
         postgresql.conf is usually in /var/lib/pgsql/data,
/var/opt/rh/rh-postgresql95/lib/pgsql/data, or somewhere under
/etc/postgresql* . You have to restart PostgreSQL after making these
changes.
          Engine database host []:


The setup script is supposed to take care of this automatically however
it fails before even attempting to upgrade postgres.  Does anybody know
how to work around this?

Yes, engine-setup is supposed to care of it by itself if the DBMS is on the same machine as in your case.
Can you please attach setup logs?
 

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