EJB in JBoss EAP 7 throws Authentication failed: all available authentication mechanisms failed

Issue

EJB in server-to-server throws the following error:

10:43:19,514 TRACE [org.jboss.remoting.remote.connection] (default I/O-2) Received EOF
10:43:19,515 TRACE [org.jboss.remoting.remote.connection] (default I/O-2) Connection error detail: javax.security.sasl.SaslException: Authentication failed: all available authentication mechanisms failed:
   DIGEST-MD5: javax.security.sasl.SaslException: DIGEST-MD5: Server rejected authentication
  at org.jboss.remoting3.remote.ClientConnectionOpenListener.allMechanismsFailed(ClientConnectionOpenListener.java:109)
  at org.jboss.remoting3.remote.ClientConnectionOpenListener$Capabilities.handleEvent(ClientConnectionOpenListener.java:262)
  at org.jboss.remoting3.remote.ClientConnectionOpenListener$Capabilities.handleEvent(ClientConnectionOpenListener.java:242)
  at org.xnio.ChannelListeners.invokeChannelListener(ChannelListeners.java:92) [xnio-api-3.6.5.Final-redhat-00001.jar:3.6.5.Final-redhat-00001]
  at org.xnio.conduits.ReadReadyHandler$ChannelListenerHandler.readReady(ReadReadyHandler.java:66) [xnio-api-3.6.5.Final-redhat-00001.jar:3.6.5.Final-redhat-00001]