<property> <name>ipc.client.fallback-to-simple-auth-allowed</name> <value>true</value> </property>
uploading core-site.xml with this property in it in the lib folder of the workflow doesn't work. <arg> and <java-opts> for this property take no effect. job config would not update, the only way to make it work was to update on the hdfs side globally.
Thank you both for your recommendations, eventually it was Predrag who suggested to update HDFS with the property. This is not optimal but for lack of better option will do. It's best to have either two unsecure or two secure clusters.
Can you try to put your copy of core-site.xml with that property set to true in the Oozie share lib folder for distcp?
adding to sharelib of distcp core-site.xml with this property does not take effect and including it in lib directory of the workflow doesn't take effect either.