Description of problem:

An attempt to deploy a fedora host which requires a proxy fails, even if a proxy is configured in /etc/dnf/dnf.conf, with:

2016-11-07 09:24:53 ERROR otopi.plugins.otopi.packagers.dnfpackager dnfpackager.error:84 DNF Curl error (6): Couldn't resolve host name for http://resources.ovirt.org/pub/yum-repo/mirrorlist-ovirt-master-snapshot-fc24 [Could not resolve host: resources.ovirt.org]
2016-11-07 09:24:53 DEBUG otopi.context context._executeMethod:142 method exception
Traceback (most recent call last):
  File "/tmp/ovirt-PYzMJSL94f/pythonlib/otopi/context.py", line 132, in _executeMethod
    method['method']()
  File "/tmp/ovirt-PYzMJSL94f/otopi-plugins/otopi/packagers/dnfpackager.py", line 240, in _packages
    self._minidnf.processTransaction()
  File "/tmp/ovirt-PYzMJSL94f/pythonlib/otopi/minidnf.py", line 645, in processTransaction
    self._processTransaction(base=self._base)
  File "/tmp/ovirt-PYzMJSL94f/pythonlib/otopi/minidnf.py", line 635, in _processTransaction
    progress=self._MyDownloadProgress(self._sink),
  File "/usr/lib/python2.7/site-packages/dnf/base.py", line 880, in download_packages
    raise dnf.exceptions.DownloadError(errors.irrecoverable)
DownloadError: Curl error (6): Couldn't resolve host name for http://resources.ovirt.org/pub/yum-repo/mirrorlist-ovirt-master-snapshot-fc24 [Could not resolve host: resources.ovirt.org]
2016-11-07 09:24:53 ERROR otopi.context context._executeMethod:151 Failed to execute stage 'Package installation': Curl error (6): Couldn't resolve host name for http://resources.ovirt.org/pub/yum-repo/mirrorlist-ovirt-master-snapshot-fc24 [Could not resolve host: resources.ovirt.org]

Version-Release number of selected component (if applicable):

Current master snapshot

How reproducible:

Always, I think

Steps to Reproduce:
0. Have an environment that does not have direct access to the Internet and requires a proxy, configure all machines to use the proxy in dnf.conf.
1. Install and setup an engine on fedora 24
2. Install a host with fedora 24
3. Install on the host python2-dnf (see bug 1297835)
4. Try to add the host to the engine

Actual results:

Fails, with the above error in host-deploy log.

Expected results:

Correctly use the proxy

Additional info:

Not fully certain where the failure is. Running 'otopi' (which tries to install an already-installed 'iproute') does not fail. It might even be a bug in dnf, not sure. This command also fails, and I do not bother for now to open another bug:

dnf install http://some.host/some/path/pkg.rpm

That is, passing a URL instead of a package name causes dnf to call curl (or libcurl) without setting a proxy.

Workaround:

on the host, before adding it to the engine:

mkdir /etc/otopi.env.d
echo 'export http_proxy=PROXY_URL' > /etc/otopi.env.d/my-proxy.env