[Galaxy Tab 2 7" Android Development] Tsjoklat:
It looks like the upgrade procedure with selinux is working now. It appears there was a recent fix related to "restorecon" that fixed the problem. I did notice another smaller bug that I can fix though.. I have removed the link I just posted in the previous post and will upload another version. Edit: here is a new version.

Edit: The selinux issue seems resolved, but there is another file permission problem with the installer-script. Those 3 lines should be chmod 644 not chmod 755 for the file permissions. XML files are always chmod 644.

1) Fix file permission in updater-script for /system/etc/permissions (change xml to 644 instead of 755) because it should be non-executable

2) Fix file permission in updater-script for /system/etc/preferred-apps (change xml to 644 instead of 755) because it should be non-executable

3) Fix file permission in updater-script for /system/etc/g.priop (change to 644 instead of 755) because it should be non-executable

Link: gapps-kk-20140105-3-signed.zip

MD5: 98276b04083d936a9af0fb2602c7596e

diff -ru gapps-kk-20140105-2-signed/META-INF/com/google/android/updater-script gapps-kk-20140105-3-signed/META-INF/com/google/android/updater-script
--- gapps-kk-20140105-2-signed/META-INF/com/google/android/updater-script	2014-01-24 01:21:10.000000000 +0100
+++ gapps-kk-20140105-3-signed/META-INF/com/google/android/updater-script	2014-01-31 04:22:00.000000000 +0100
@@ -17,9 +17,9 @@
set_metadata_recursive("/system/addon.d", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0755, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
set_metadata_recursive("/system/app", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0644, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
set_metadata_recursive("/system/priv-app", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0644, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
-set_metadata_recursive("/system/etc/permissions", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0755, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
-set_metadata_recursive("/system/etc/preferred-apps", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0755, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
-set_metadata("/system/etc/g.prop", "uid", 0, "gid", 0, "mode", 0755, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
+set_metadata_recursive("/system/etc/permissions", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0644, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
+set_metadata_recursive("/system/etc/preferred-apps", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0644, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
+set_metadata("/system/etc/g.prop", "uid", 0, "gid", 0, "mode", 0644, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
set_metadata_recursive("/system/framework", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0644, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
set_metadata_recursive("/system/lib", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0644, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");
set_metadata_recursive("/system/usr/srec/en-US", "uid", 0, "gid", 0, "dmode", 0755, "fmode", 0644, "capabilities", 0x0, "selabel", "u:object_r:system_file:s0");