SaslException: All available authentication mechanisms Failed to read server challenge in JBoss EAP 7

Issue

• We have a remote naming client trying to connect to a JBoss EAP 7.0 instance and is getting this authentication exception.

Exception in thread "main" javax.naming.AuthenticationException: Failed to connect to any server. Servers tried: [http-remoting://127.0.0.1:8080 (Authentication failed: all available authentication mechanisms failed:
   JBOSS-LOCAL-USER: javax.security.sasl.SaslException: Failed to read server challenge [Caused by java.io.FileNotFoundException: C:\jboss-eap-7.0.0\standalone\tmp\auth\local3135071237957063730.challenge (The system cannot find the path specified)]
   DIGEST-MD5: Server rejected authentication)] [Root exception is javax.security.sasl.SaslException: Authentication failed: all available authentication mechanisms failed:
   JBOSS-LOCAL-USER: javax.security.sasl.SaslException: Failed to read server challenge [Caused by java.io.FileNotFoundException: C:\jboss-eap-7.0.0\standalone\tmp\auth\local3135071237957063730.challenge (The system cannot find the path specified)]
   DIGEST-MD5: Server rejected authentication]
        at org.jboss.naming.remote.client.HaRemoteNamingStore.failOverSequence(HaRemoteNamingStore.java:238)
        at org.jboss.naming.remote.client.HaRemoteNamingStore.namingStore(HaRemoteNamingStore.java:149)
        at org.jboss.naming.remote.client.HaRemoteNamingStore.namingOperation(HaRemoteNamingStore.java:130)
        at org.jboss.naming.remote.client.HaRemoteNamingStore.lookup(HaRemoteNamingStore.java:272)
        at org.jboss.naming.remote.client.RemoteContext.lookupInternal(RemoteContext.java:104)
        at org.jboss.naming.remote.client.RemoteContext.lookup(RemoteContext.java:93)
        at org.jboss.naming.remote.client.RemoteContext.lookup(RemoteContext.java:146)
        at javax.naming.InitialContext.lookup(Unknown Source)
        at redhat.QueueSend.init(QueueSend.java:45)
        at redhat.QueueSend.main(QueueSend.java:90)
Caused by: javax.security.sasl.SaslException: Authentication failed: all available authentication mechanisms failed:
   JBOSS-LOCAL-USER: javax.security.sasl.SaslException: Failed to read server challenge [Caused by java.io.FileNotFoundException: E:\jboss-eap-7.0.0\standalone\tmp\auth\local7136072237958063451.challenge (The system cannot find the path specified)]
   DIGEST-MD5: Server rejected authentication
        at org.jboss.remoting3.remote.ClientConnectionOpenListener.allMechanismsFailed(ClientConnectionOpenListener.java:114)
        at org.jboss.remoting3.remote.ClientConnectionOpenListener$Capabilities.handleEvent(ClientConnectionOpenListener.java:389)
        at org.jboss.remoting3.remote.ClientConnectionOpenListener$Capabilities.handleEvent(ClientConnectionOpenListener.java:241)
        at org.xnio.ChannelListeners.invokeChannelListener(ChannelListeners.java:92)
        at org.xnio.channels.TranslatingSuspendableChannel.handleReadable(TranslatingSuspendableChannel.java:198)
        at org.xnio.channels.TranslatingSuspendableChannel$1.handleEvent(TranslatingSuspendableChannel.java:112)
        at org.xnio.ChannelListeners.invokeChannelListener(ChannelListeners.java:92)
        at org.xnio.ChannelListeners$DelegatingChannelListener.handleEvent(ChannelListeners.java:1092)
        at org.xnio.ChannelListeners.invokeChannelListener(ChannelListeners.java:92)
        at org.xnio.conduits.ReadReadyHandler$ChannelListenerHandler.readReady(ReadReadyHandler.java:66)
        at org.xnio.nio.NioSocketConduit.handleReady(NioSocketConduit.java:89)
        at org.xnio.nio.WorkerThread.run(WorkerThread.java:571)
        at ...asynchronous invocation...(Unknown Source)
        at org.jboss.remoting3.EndpointImpl.doConnect(EndpointImpl.java:294)
        at org.jboss.remoting3.EndpointImpl.doConnect(EndpointImpl.java:276)
        at org.jboss.remoting3.EndpointImpl.connect(EndpointImpl.java:393)
        at org.jboss.remoting3.EndpointImpl.connect(EndpointImpl.java:377)
        at org.jboss.naming.remote.client.EndpointCache$EndpointWrapper.connect(EndpointCache.java:111)
        at org.jboss.naming.remote.client.HaRemoteNamingStore.failOverSequence(HaRemoteNamingStore.java:197)
        ... 9 more

• We have a standalone java application that is able to invoke an EJB when it is on the same machine as the server, but when they are on different machines it fails with:

   JBOSS-LOCAL-USER: javax.security.sasl.SaslException: ELY05128: Failed to read challenge file [Caused by java.io.FileNotFoundException: \home\jboss\standalone\tmp\auth\local1211839583212539848.challenge (The system cannot find the path specified)]
   DIGEST-MD5: javax.security.sasl.SaslException: ELY05051: Callback handler does not support credential acquisition [Caused by javax.security.auth.callback.UnsupportedCallbackException]
    at org.jboss.remoting3.remote.ClientConnectionOpenListener.allMechanismsFailed(ClientConnectionOpenListener.java:109)
        ...
    at org.jboss.remoting3.EndpointImpl.connect(EndpointImpl.java:553)
    at org.jboss.ejb.client.remoting.NetworkUtil.connect(NetworkUtil.java:190)
    at org.jboss.ejb.client.remoting.NetworkUtil.connect(NetworkUtil.java:149)
    at org.jboss.ejb.client.remoting.ConnectionPool.getConnection(ConnectionPool.java:82)
    at org.jboss.ejb.client.remoting.RemotingConnectionManager.getConnection(RemotingConnectionManager.java:51)
    at org.jboss.ejb.client.remoting.RemotingConnectionClusterNodeManager.getEJBReceiver(RemotingConnectionClusterNodeManager.java:79)
    at org.jboss.ejb.client.ClusterContext$EJBReceiverAssociationTask.call(ClusterContext.java:506)
    at org.jboss.ejb.client.ClusterContext$EJBReceiverAssociationTask.call(ClusterContext.java:480)
...
    Caused by: java.io.FileNotFoundException: \home\jboss\standalone\tmp\auth\local1211839583212539848.challenge (The system cannot find the path specified)