Testing on a fresh install and did no run into the problem so came to the conclusion that this error only appears when you upgrade from 7.0 to 7.0.1
SSH into Orchestrator appliance and reviewed the logs.
2016-04-27T17:19:32.013813+00:00 ldvro01 sudo: vco : a password is required ; TTY=unknown ; PWD=/var/lib/vco/configuration/bin ; USER=root ; COMMAND=/var/lib/vco/app-server /../configuration/bin/config_liagent.sh /var/lib/vco/configuration/temp/liagent.tmp /var/lib/loginsight-agent/liagent.ini
2016-04-27T17:20:10.075308+00:00 ldvro01 sshd: rexec line 79: Unsupported option KerberosAuthentication
2016-04-27T17:20:10.075376+00:00 ldvro01 sshd: rexec line 85: Unsupported option GSSAPIAuthentication
Found the script that gets executed to be /var/lib/vco/configuration/bin/config_liagent.sh which actually resides on /usr/lib/vco/configuration/bin/config_liagent.sh
Listing the folder shows that vco:vco has rwx permission.
:/usr/lib/vco/configuration/bin # ls -ll
-rwx------ 1 vco vco 218 Feb 19 15:09 config_liagent.sh
-rwx------ 1 vco vco 230 Feb 19 15:09 controlcenter.sh
-rw-r--r-- 1 vco vco 6718 Feb 19 15:09 log4j.dtd
-rw-r--r-- 1 vco vco 3315 Feb 19 15:09 propagate.sh
-rwx------ 1 vco vco 1321 Feb 19 15:09 setenv.sh
A password is required is throw in the error message which leads me to think the vco user does not have the necessary permissions when trying to execute the command.
Looking in /etc/sudoers file and found the vco missing the path to the config_liagent.sh file.
Add the path to config_liagent.sh for vco user.
scroll to bottom of file.
you will see the following:
vco ALL=(root) NOPASSWD: /etc/init.d/vco-server, /etc/init.d/vco-configurator
update the line as follows:
vco ALL=(root) NOPASSWD: /etc/init.d/vco-server, /etc/init.d/vco-configurator, /var/lib/vco/configuration/bin/config_liagent.sh