Still reproducible with the latest devstack. Here's my screen grab.

vagrant@ubuntu:~$ env | grep OS_
OS_IDENTITY_API_VERSION=3
OS_PASSWORD=secrete
OS_DOMAIN_NAME=foo
OS_AUTH_TYPE=password
OS_AUTH_URL=http://localhost/identity
OS_USERNAME=foo_user
vagrant@ubuntu:~$ openstack token issue --debug
START with options: [u'token', u'issue', u'--debug']
options: Namespace(access_key='', access_secret='***', access_token='***', access_token_endpoint='', access_token_type='', auth_type='password', auth_url='http://localhost/identity', cacert=None, cert='', client_id='', client_secret='***', cloud='', code='', consumer_key='', consumer_secret='***', debug=True, default_domain='default', default_domain_id='', default_domain_name='', deferred_help=False, discovery_endpoint='', domain_id='', domain_name='foo', endpoint='', identity_provider='', identity_provider_url='', insecure=None, interface='', key='', log_file=None, openid_scope='', os_beta_command=False, os_compute_api_version='', os_identity_api_version='3', os_image_api_version='', os_network_api_version='', os_object_api_version='', os_project_id=None, os_project_name=None, os_volume_api_version='', passcode='', password='***', profile='', project_domain_id='', project_domain_name='', project_id='', project_name='', protocol='', redirect_uri='', region_name='', service_provider_endpoint='', service_provider_entity_id='', timing=False, token='***', trust_id='', url='', user_domain_id='', user_domain_name='', user_id='', username='foo_user', verbose_level=3, verify=None)
Auth plugin password selected
auth_config_hook(): {'auth_type': 'password', 'beta_command': False, u'compute_api_version': u'2', u'orchestration_api_version': u'1', u'database_api_version': u'1.0', u'metering_api_version': u'2', 'auth_url': 'http://localhost/identity', u'network_api_version': u'2', u'message': u'', u'image_format': u'qcow2', 'networks': [], u'image_api_version': u'2', 'verify': True, u'dns_api_version': u'2', u'object_store_api_version': u'1', u'status': u'active', u'container_infra_api_version': u'1', 'verbose_level': 3, 'region_name': '', 'api_timeout': None, u'baremetal_api_version': u'1', 'auth': {'domain_name': 'foo', 'user_domain_id': 'default', 'project_domain_id': 'default'}, 'default_domain': 'default', u'container_api_version': u'1', u'image_api_use_tasks': False, u'floating_ip_source': u'neutron', 'key': None, 'timing': False, 'password': '***', u'application_catalog_api_version': u'1', 'cacert': None, u'key_manager_api_version': u'v1', u'workflow_api_version': u'2', 'deferred_help': False, u'identity_api_version': '3', u'volume_api_version': u'2', 'username': 'foo_user', 'cert': None, u'secgroup_source': u'neutron', 'debug': True, u'interface': None, u'disable_vendor_agent': {}}
defaults: {u'auth_type': 'password', u'status': u'active', u'compute_api_version': u'2', 'key': None, u'database_api_version': u'1.0', 'api_timeout': None, u'baremetal_api_version': u'1', u'image_api_version': u'2', u'container_infra_api_version': u'1', u'metering_api_version': u'2', u'image_api_use_tasks': False, u'floating_ip_source': u'neutron', u'orchestration_api_version': u'1', 'cacert': None, u'network_api_version': u'2', u'message': u'', u'image_format': u'qcow2', u'application_catalog_api_version': u'1', u'key_manager_api_version': u'v1', u'workflow_api_version': u'2', 'verify': True, u'identity_api_version': u'2.0', u'volume_api_version': u'2', 'cert': None, u'secgroup_source': u'neutron', u'container_api_version': u'1', u'dns_api_version': u'2', u'object_store_api_version': u'1', u'interface': None, u'disable_vendor_agent': {}}
cloud cfg: {'auth_type': 'password', 'beta_command': False, u'compute_api_version': u'2', u'orchestration_api_version': u'1', u'database_api_version': u'1.0', u'metering_api_version': u'2', 'auth_url': 'http://localhost/identity', u'network_api_version': u'2', u'message': u'', u'image_format': u'qcow2', 'networks': [], u'image_api_version': u'2', 'verify': True, u'dns_api_version': u'2', u'object_store_api_version': u'1', u'status': u'active', u'container_infra_api_version': u'1', 'verbose_level': 3, 'region_name': '', 'api_timeout': None, u'baremetal_api_version': u'1', 'auth': {'domain_name': 'foo', 'user_domain_id': 'default', 'project_domain_id': 'default'}, 'default_domain': 'default', u'container_api_version': u'1', u'image_api_use_tasks': False, u'floating_ip_source': u'neutron', 'key': None, 'timing': False, 'password': '***', u'application_catalog_api_version': u'1', 'cacert': None, u'key_manager_api_version': u'v1', u'workflow_api_version': u'2', 'deferred_help': False, u'identity_api_version': '3', u'volume_api_version': u'2', 'username': 'foo_user', 'cert': None, u'secgroup_source': u'neutron', 'debug': True, u'interface': None, u'disable_vendor_agent': {}}
compute API version 2, cmd group openstack.compute.v2
network API version 2, cmd group openstack.network.v2
image API version 2, cmd group openstack.image.v2
volume API version 2, cmd group openstack.volume.v2
identity API version 3, cmd group openstack.identity.v3
object_store API version 1, cmd group openstack.object_store.v1
Auth plugin password selected
auth_config_hook(): {'auth_type': 'password', 'beta_command': False, u'compute_api_version': u'2', u'orchestration_api_version': u'1', u'database_api_version': u'1.0', u'metering_api_version': u'2', 'auth_url': 'http://localhost/identity', u'network_api_version': u'2', u'message': u'', u'image_format': u'qcow2', 'networks': [], u'image_api_version': u'2', 'verify': True, u'dns_api_version': u'2', u'object_store_api_version': u'1', u'status': u'active', u'container_infra_api_version': u'1', 'verbose_level': 3, 'region_name': '', 'api_timeout': None, u'baremetal_api_version': u'1', 'auth': {'domain_name': 'foo', 'user_domain_id': 'default', 'project_domain_id': 'default'}, 'default_domain': 'default', u'container_api_version': u'1', u'image_api_use_tasks': False, u'floating_ip_source': u'neutron', 'key': None, 'timing': False, 'password': '***', u'application_catalog_api_version': u'1', 'cacert': None, u'key_manager_api_version': u'v1', u'workflow_api_version': u'2', 'deferred_help': False, u'identity_api_version': '3', u'volume_api_version': u'2', 'username': 'foo_user', 'cert': None, u'secgroup_source': u'neutron', 'debug': True, u'interface': None, u'disable_vendor_agent': {}}
Auth plugin password selected
auth_config_hook(): {'auth_type': 'password', 'beta_command': False, u'compute_api_version': u'2', u'orchestration_api_version': u'1', u'database_api_version': u'1.0', u'metering_api_version': u'2', 'auth_url': 'http://localhost/identity', u'network_api_version': u'2', u'message': u'', u'image_format': u'qcow2', 'networks': [], u'image_api_version': u'2', 'verify': True, u'dns_api_version': u'2', u'object_store_api_version': u'1', u'status': u'active', u'container_infra_api_version': u'1', 'verbose_level': 3, 'region_name': '', 'api_timeout': None, u'baremetal_api_version': u'1', 'auth': {'domain_name': 'foo', 'user_domain_id': 'default', 'project_domain_id': 'default'}, 'default_domain': 'default', u'container_api_version': u'1', u'image_api_use_tasks': False, u'floating_ip_source': u'neutron', 'key': None, 'timing': False, 'password': '***', u'application_catalog_api_version': u'1', 'cacert': None, u'key_manager_api_version': u'v1', u'workflow_api_version': u'2', 'deferred_help': False, u'identity_api_version': '3', u'volume_api_version': u'2', 'username': 'foo_user', 'cert': None, u'secgroup_source': u'neutron', 'debug': True, u'interface': None, u'disable_vendor_agent': {}}
command: token issue -> openstackclient.identity.v3.token.IssueToken (auth=True)
Auth plugin password selected
auth_config_hook(): {'auth_type': 'password', 'beta_command': False, u'compute_api_version': u'2', u'orchestration_api_version': u'1', u'database_api_version': u'1.0', u'metering_api_version': u'2', 'auth_url': 'http://localhost/identity', u'network_api_version': u'2', u'message': u'', u'image_format': u'qcow2', 'networks': [], u'image_api_version': u'2', 'verify': True, u'dns_api_version': u'2', u'object_store_api_version': u'1', u'status': u'active', u'container_infra_api_version': u'1', 'verbose_level': 3, 'region_name': '', 'api_timeout': None, u'baremetal_api_version': u'1', 'auth': {'domain_name': 'foo', 'user_domain_id': 'default', 'project_domain_id': 'default'}, 'default_domain': 'default', u'container_api_version': u'1', u'image_api_use_tasks': False, u'floating_ip_source': u'neutron', 'key': None, 'timing': False, 'password': '***', u'application_catalog_api_version': u'1', 'cacert': None, u'key_manager_api_version': u'v1', u'workflow_api_version': u'2', 'deferred_help': False, u'identity_api_version': '3', u'volume_api_version': u'2', 'username': 'foo_user', 'cert': None, u'secgroup_source': u'neutron', 'debug': True, u'interface': None, u'disable_vendor_agent': {}}
Using auth plugin: password
Using parameters {'username': 'foo_user', 'user_domain_id': 'default', 'domain_name': 'foo', 'auth_url': 'http://localhost/identity', 'password': '***', 'project_domain_id': 'default'}
Get auth_ref
REQ: curl -g -i -X GET http://localhost/identity -H "Accept: application/json" -H "User-Agent: osc-lib/1.7.0 keystoneauth1/3.2.0 python-requests/2.18.4 CPython/2.7.12"
Starting new HTTP connection (1): localhost
http://localhost:80 "GET /identity HTTP/1.1" 300 600
RESP: [300] Date: Thu, 14 Sep 2017 20:25:05 GMT Server: Apache/2.4.18 (Ubuntu) Vary: X-Auth-Token Content-Type: application/json Content-Length: 600 Connection: close 
RESP BODY: {"versions": {"values": [{"status": "stable", "updated": "2017-02-22T00:00:00Z", "media-types": [{"base": "application/json", "type": "application/vnd.openstack.identity-v3+json"}], "id": "v3.8", "links": [{"href": "http://127.0.0.1/identity/v3/", "rel": "self"}]}, {"status": "deprecated", "updated": "2016-08-04T00:00:00Z", "media-types": [{"base": "application/json", "type": "application/vnd.openstack.identity-v2.0+json"}], "id": "v2.0", "links": [{"href": "http://127.0.0.1/identity/v2.0/", "rel": "self"}, {"href": "https://docs.openstack.org/", "type": "text/html", "rel": "describedby"}]}]}}

Making authentication request to http://localhost/identity/v3/auth/tokens
Resetting dropped connection: localhost
http://localhost:80 "POST /identity/v3/auth/tokens HTTP/1.1" 401 114
Request returned failure status: 401
The request you have made requires authentication. (HTTP 401) (Request-ID: req-d1640f3e-4919-4fd3-b7a8-c836094ca5c4)
Traceback (most recent call last):
  File "/usr/local/lib/python2.7/dist-packages/cliff/app.py", line 393, in run_subcommand
    self.prepare_to_run_command(cmd)
  File "/usr/local/lib/python2.7/dist-packages/openstackclient/shell.py", line 200, in prepare_to_run_command
    return super(OpenStackShell, self).prepare_to_run_command(cmd)
  File "/usr/local/lib/python2.7/dist-packages/osc_lib/shell.py", line 437, in prepare_to_run_command
    self.client_manager.auth_ref
  File "/usr/local/lib/python2.7/dist-packages/openstackclient/common/clientmanager.py", line 99, in auth_ref
    return super(ClientManager, self).auth_ref
  File "/usr/local/lib/python2.7/dist-packages/osc_lib/clientmanager.py", line 239, in auth_ref
    self._auth_ref = self.auth.get_auth_ref(self.session)
  File "/usr/local/lib/python2.7/dist-packages/keystoneauth1/identity/generic/base.py", line 198, in get_auth_ref
    return self._plugin.get_auth_ref(session, **kwargs)
  File "/usr/local/lib/python2.7/dist-packages/keystoneauth1/identity/v3/base.py", line 165, in get_auth_ref
    authenticated=False, log=False, **rkwargs)
  File "/usr/local/lib/python2.7/dist-packages/keystoneauth1/session.py", line 848, in post
    return self.request(url, 'POST', **kwargs)
  File "/usr/local/lib/python2.7/dist-packages/osc_lib/session.py", line 40, in request
    resp = super(TimingSession, self).request(url, method, **kwargs)
  File "/usr/local/lib/python2.7/dist-packages/keystoneauth1/session.py", line 737, in request
    raise exceptions.from_response(resp, method, url)
Unauthorized: The request you have made requires authentication. (HTTP 401) (Request-ID: req-d1640f3e-4919-4fd3-b7a8-c836094ca5c4)
clean_up IssueToken: The request you have made requires authentication. (HTTP 401) (Request-ID: req-d1640f3e-4919-4fd3-b7a8-c836094ca5c4)
Traceback (most recent call last):
  File "/usr/local/lib/python2.7/dist-packages/osc_lib/shell.py", line 134, in run
    ret_val = super(OpenStackShell, self).run(argv)
  File "/usr/local/lib/python2.7/dist-packages/cliff/app.py", line 279, in run
    result = self.run_subcommand(remainder)
  File "/usr/local/lib/python2.7/dist-packages/osc_lib/shell.py", line 169, in run_subcommand
    ret_value = super(OpenStackShell, self).run_subcommand(argv)
  File "/usr/local/lib/python2.7/dist-packages/cliff/app.py", line 393, in run_subcommand
    self.prepare_to_run_command(cmd)
  File "/usr/local/lib/python2.7/dist-packages/openstackclient/shell.py", line 200, in prepare_to_run_command
    return super(OpenStackShell, self).prepare_to_run_command(cmd)
  File "/usr/local/lib/python2.7/dist-packages/osc_lib/shell.py", line 437, in prepare_to_run_command
    self.client_manager.auth_ref
  File "/usr/local/lib/python2.7/dist-packages/openstackclient/common/clientmanager.py", line 99, in auth_ref
    return super(ClientManager, self).auth_ref
  File "/usr/local/lib/python2.7/dist-packages/osc_lib/clientmanager.py", line 239, in auth_ref
    self._auth_ref = self.auth.get_auth_ref(self.session)
  File "/usr/local/lib/python2.7/dist-packages/keystoneauth1/identity/generic/base.py", line 198, in get_auth_ref
    return self._plugin.get_auth_ref(session, **kwargs)
  File "/usr/local/lib/python2.7/dist-packages/keystoneauth1/identity/v3/base.py", line 165, in get_auth_ref
    authenticated=False, log=False, **rkwargs)
  File "/usr/local/lib/python2.7/dist-packages/keystoneauth1/session.py", line 848, in post
    return self.request(url, 'POST', **kwargs)
  File "/usr/local/lib/python2.7/dist-packages/osc_lib/session.py", line 40, in request
    resp = super(TimingSession, self).request(url, method, **kwargs)
  File "/usr/local/lib/python2.7/dist-packages/keystoneauth1/session.py", line 737, in request
    raise exceptions.from_response(resp, method, url)
Unauthorized: The request you have made requires authentication. (HTTP 401) (Request-ID: req-d1640f3e-4919-4fd3-b7a8-c836094ca5c4)

END return value: 1