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virt-who does not employ a proxy between itself and the xen server. There is no setting that will cause this to happen.
subscription-manager uses http_proxy and https_proxy.

no_proxy is the environment variable that subscription manager employs to filter out candlepin servers from the proxy.
rhsm_no_proxy is the configuration variable that virt-who uses to employ the no_proxy environment variable.


please reevaluate this bug on this information and we need to look at the testing scenarios to ensure they reflect the proper behavior.

Xen supportability was provided only till RHEL 5. Hence closing the bug as wont fix.