Airflow's HDFS integration uses snakebite, a python HDFS client. The original authors of snakebite never ported it to python3. Internet Archive took over with minimal resources and created a snakebite-py3 version, which with work from @elukey Airflow was able to use. However, the encryption and kerberos support in snakebite-py3 does not work 100%. Luca was able to get it close, but the final blocker was never resolved: Snakebite doesn't work with HDFS RPC encryption.
The real solution would be to replace Airflow's use of snakebite with a better HDFS client: pyarrow.
We should accomplish https://issues.apache.org/jira/browse/AIRFLOW-2697 and push the changes upstream.
From a quick read of the code, think this shouldn't be too difficult to do.