RStudio when launched without Singularity is having strange troubles with authentication

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We tried updating to 1.3 with the rpm install as suggested however we are now unable to launch the rstudio session and see the following error in the /var/log/messages:

Nov 23 08:47:32 cn002 rserver[25662]: ERROR system error 1 (Operation not permitted) [path: /var/run/rstudio-server/revocation-list, description: Could not set revocation file permissions to 600 for file: /var/run/rstudio-server/revocation-list]; OCCURRED AT rstudio::core::Error rstudio::core::system::changeFileMode(const rstudio::core::FilePath&, mode_t) src/cpp/server/ServerMain.cpp:62; LOGGED FROM: rstudio::core::Error rstudio::server::auth::handler::initialize() src/cpp/server/auth/ServerAuthHandler.cpp:530
Nov 23 08:47:32 cn002 rserver[25662]: ERROR Could not write to revocation list; LOGGED FROM: rstudio::core::Error rstudio::server::auth::handler::initialize() src/cpp/server/auth/ServerAuthHandler.cpp:549
Nov 23 08:47:32 cn002 rserver[25662]: ERROR system error 2 (No such file or directory) [path: /var/run/rstudio-server/revocation-list]; OCCURRED AT rstudio::core::Error rstudio::core::FilePath::openForWrite(std::shared_ptr<std::basic_ostream<char> >&, bool) const src/cpp/shared_core/FilePath.cpp:1225; LOGGED FROM: int main(int, char* const*) src/cpp/server/ServerMain.cpp:674

Based on the rpm install it specifically calls out that we need the flag --server-data-dir however when we add it we are unable to authenticate with the pam auth.
Ref:

  --server-data-dir arg (=/var/run/rstudio-server)
                                        path to data directory where rstudio 
                                        server will write run-time state