diff --git a/convert2rhel/pkgmanager/handlers/dnf/__init__.py b/convert2rhel/pkgmanager/handlers/dnf/__init__.py
index 02275c4b25..7e166b23ec 100644
--- a/convert2rhel/pkgmanager/handlers/dnf/__init__.py
+++ b/convert2rhel/pkgmanager/handlers/dnf/__init__.py
@@ -86,9 +86,10 @@ def _set_up_base(self):
         # going in with the packages in the transaction.
         self._base._ds_callback = DependencySolverProgressIndicatorCallback()
 
-        # Override the exclude option that is loaded from the config and set it
-        # to empty.
-        self._base.conf.substitutions["exclude"] = []
+        # Override the exclude option that is loaded from the config and set it to empty.
+        # NOTE(r0x0d): In DNF they have exclude to be `py:excludepkgs`. It is fine to use `exclude` for now as it is
+        # compatible with yum.
+        self._base.conf.exclude = []
 
     def _enable_repos(self):
         """Enable a list of required repositories."""
diff --git a/convert2rhel/unit_tests/pkghandler_test.py b/convert2rhel/unit_tests/pkghandler_test.py
index c4e78364eb..c5b01886d7 100644
--- a/convert2rhel/unit_tests/pkghandler_test.py
+++ b/convert2rhel/unit_tests/pkghandler_test.py
@@ -231,36 +231,6 @@ def test_get_rpm_header_failure(self, monkeypatch):
             pkghandler.get_rpm_header(unknown_pkg)
 
 
-class TestPreserveOnlyRHELKernel:
-    @centos7
-    def test_preserve_only_rhel_kernel(self, pretend_os, monkeypatch):
-        monkeypatch.setattr(pkghandler, "install_rhel_kernel", lambda: True)
-        monkeypatch.setattr(pkghandler, "fix_invalid_grub2_entries", lambda: None)
-        monkeypatch.setattr(pkghandler, "remove_non_rhel_kernels", mock.Mock(return_value=[]))
-        monkeypatch.setattr(pkghandler, "install_gpg_keys", mock.Mock())
-        monkeypatch.setattr(utils, "run_subprocess", RunSubprocessMocked())
-        monkeypatch.setattr(
-            pkghandler,
-            "get_installed_pkgs_by_fingerprint",
-            GetInstalledPkgsByFingerprintMocked(return_value=[create_pkg_information(name="kernel")]),
-        )
-        monkeypatch.setattr(system_info, "name", "CentOS7")
-        monkeypatch.setattr(system_info, "arch", "x86_64")
-        monkeypatch.setattr(utils, "store_content_to_file", StoreContentToFileMocked())
-
-        pkghandler.preserve_only_rhel_kernel()
-
-        assert utils.run_subprocess.cmd == [
-            "yum",
-            "update",
-            "--setopt=exclude=",
-            "-y",
-            "--releasever=7Server",
-            "kernel",
-        ]
-        assert pkghandler.get_installed_pkgs_by_fingerprint.call_count == 1
-
-
 class TestGetKernelAvailability:
     @pytest.mark.parametrize(
         ("subprocess_output", "expected_installed", "expected_available"),