3390881 - Error in Cloud Connector: "No CA certificate available, which is required for supporting Principal Propagation."

Principal propagation is not working as expected. The following error messages are seen in the Ljs_trace.log file of SAP Cloud Connector.

<>ERROR#com.sap.core.connectivity.protocol.http.handlers.HttpAuthenticationHandler#tunnel-client-25-6##Unable to generate authorization token
java.lang.IllegalStateException: No CA certificate available, which is required for supporting Principal Propagation.
    at com.sap.scc.cert.CertificateGenerator.createLocalToken(CertificateGenerator.java:235)
    at com.sap.scc.cert.CertificateGenerator.createToken(CertificateGenerator.java:176)
    at com.sap.scc.cert.CertificateGenerator.generateToken(CertificateGenerator.java:136)
    at com.sap.scc.sso.SccBackendTokenGenerator.generateToken(SccBackendTokenGenerator.java:52)
    at com.sap.core.connectivity.protocol.http.handlers.HttpAuthenticationHandler.generateAuthenticationToken(HttpAuthenticationHandler.java:145)
    at com.sap.core.connectivity.protocol.http.handlers.HttpAuthenticationHandler.handleHttpRequest(HttpAuthenticationHandler.java:81)
    at com.sap.core.connectivity.protocol.http.handlers.HttpAbstractAuthenticationHandler.writeImpl(HttpAbstractAuthenticationHandler.java:49)
    at com.sap.core.connectivity.protocol.http.handlers.HttpProtocolHandler.write(HttpProtocolHandler.java:83)
    at io.netty.channel.AbstractChannelHandlerContext.invokeWrite0(AbstractChannelHandlerContext.java:879)
    at io.netty.channel.AbstractChannelHandlerContext.invokeWrite(AbstractChannelHandlerContext.java:863)
    at io.netty.channel.AbstractChannelHandlerContext.write(AbstractChannelHandlerContext.java:968)
    at io.netty.channel.AbstractChannelHandlerContext.write(AbstractChannelHandlerContext.java:856)
    at io.netty.channel.ChannelDuplexHandler.write(ChannelDuplexHandler.java:115)

SAP Cloud Connector 2.15 - 2.17

Principal propagation, No CA certificate available, Cloud Connector, SCC, Authorization token, SSO, X509 , KBA , BC-MID-SCC , SAP Cloud Connector On-Demand/On-Premise Connectivity , Problem