The way i resolved this, was to update only specific packages first.
So i am not using this step " yum update ovirt\*setup\* " and use the
bellow command which updates the engine-setup.
dnf update ovirt-engine-setup ovirt-engine-setup-plugin-websocket-proxy
ovirt-engine-dwh-setup ovirt-engine-dwh-grafana-integration-setup
After the engine-setup gets updated, i can run fine engine-setup and proceed with the
update.