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I had this exact issue.

Here was what I did to make is work.

I initially had the proxy set in my environment variables and I was getting this error. I moved my proxy setting to yum.conf and that solve the issue.

Steps to add proxy to yum.conf

vi /etc/yum.conf proxy=http://www-proxy.bbb.ccccc:4242 --------- This is an example, use your proxy here.

I did this for both the controllers and compute nodes and everything started working.