Initial Setup once the VM or Physical device is running

There must be either a serial console or HDMI monitor with USB keyboard connected to the device to complete the initial setup.
Initial Setup Limited to Create User
There are currently a few issues with the initial-setup. It currently only allows you to create a standard user. This issue is currently been tracked in RHBZ 1578930.

Create a User

The provided image has a locked root account. No password has been set and logging into the system, locally or remotely, with the root account is not allowed.

The first time the image is booted, an initial setup screen will appear.

Initial Setup prompt to select user

Follow the prompts on the screen to create a standard user.

Initial Setup prompt to create user

Continue selecting options to set a user name. When you select 'Use password' a new menu option will appear to set the password.

Initial Setup prompt not yet admin

Ensure that the user will have root privileges by selecting the 'Administrator' option. This will add the user to the wheel group. Members of the wheel group can use sudo with any command by default.

Initial Setup prompt with admin checked

Once the user is created, press c to continue at each prompt until the system continues to boot.

Initial Setup ready for final c to continue

Access a root Shell

Once the initial setup dialog has completed, login as the new user and use sudo to gain root privileges.

[testuser@localhost ~]$ sudo -i

A prompt for the user password will appear. If the user was added to the wheel group, the correct user password will result in an interactive root shell. Be sure to exit when the root privilege is no longer needed.

If you wish to, you can set a root password, otherwise the root account remains locked and all access must be initiated by a standard user. Unless you have a specific need for direct root access, leaving the root account locked is recommended.