The yum package_module fails to get package updates available until the yum package cache is initalized.
yum list-updates-local fails to list packages, and an error indicating that yum was unable to retrieve the repository metadata is emitted.
Refreshing the yum cache allows local updates to be listed.
If yum list-updates-local fails when using offline listing, fall back and allow the query to hit the network
This patch works in my limited testing. At least, for newly provisioned systems where the cache is not present, this improves the case.