Chmod/chown/mkdir: Operation not permitted as root

I get Operation not permitted for root user on one server but not on the other "identical" server.

Running on Amazon Linux 1.

Server 1:

[root@preprod-1 ]# chown root:root /s3mnt/outliers/
chown: changing ownership of ‘/s3mnt/outliers/’: Operation not permitted

[root@preprod-1 ]# chmod -x /s3mnt/outliers/
chmod: changing permissions of ‘/s3mnt/outliers/’: Operation not permitted

[root@preprod-1 ]# cd /s3mnt/outliers

[root@preprod-1 outliers]# mkdir test2
mkdir: cannot create directory ‘test2’: Operation not permitted

[root@preprod-1 ]# ls -ld /s3mnt/outliers
drwxrwxrwx 1 brutus brutus 0 Aug  2  2017 /s3mnt/outliers

[root@preprod-1 ]# ls -ld /s3mnt/
drwxrwxrwx 1 brutus brutus 0 Jan  1  1970 /s3mnt/

[root@preprod-1 ]# sestatus
SELinux status:                 disabled

Server 2:

[root@prod-1-1 via]# ls -ld /s3mnt/outliers
d--------- 1 brutus brutus 0 Jan  1  1970 /s3mnt/outliers

[root@prod-1-1 via]# ls -ld /s3mnt/
drwxrwxrwx 1 brutus brutus 0 Jan  1  1970 /s3mnt/

[root@prod-1-1 via]# cd /s3mnt/outliers

[root@prod-1-1 outliers]# mkdir test2

[root@prod-1-1 outliers]# ls -ld test2/
drwxr-xr-x 1 brutus brutus 0 Nov 25 12:45 test2/

[root@prod-1-1 outliers]# chmod -x /s3mnt/outliers/test2/

[root@prod-1-1 outliers]# ls -ld test2/
drw-r--r-- 1 brutus brutus 0 Nov 25 12:45 test2/

[root@prod-1-1 outliers]# chown root:root test2

[root@prod-1-1 outliers]# ls -ld test2/
drw-r--r-- 1 brutus brutus 0 Nov 25 12:45 test2/

[root@prod-1-1 ]# sestatus
SELinux status:                 disabled

Mounted as rw per mount cmd on both servers. Both servers have identical /etc/fstab.

Setup on both servers is identical:

lrwxrwxrwx   1 root   root      14 May 21  2018 s3mnt -> /storage/s3mnt 
drwxr-xr-x   7 brutus brutus  4096 May 21  2018 storage 

# mount 
s3fs on /storage/s3mnt type fuse.s3fs (rw,relatime,user_id=0,group_id=0,allow_other) 

When changing permissions on the mountpoint I get the expected changing ownership of Input/output error. So it's not that. Wish it was 🙁

What else can I check to find out why I am running into the above issues on one server but not the other?