"No inventory was parsed" in AWX, but works with ansible-navigator

AWX: 24.6.1
Ansible: 2.18.5

I’m stuck trying to run my playbook in AWX. My issues is that the same project, playbook, inventory, EE works with ansible-navigator, but not in AWX.
Tasks with delegate_to: localhost work in AWX. But not those using connection: httpapi

Successful with ansible-navigator

#ansible-navigator run dev-provision-nodes.yml -i inventories/dev/inventory.ini -vvvv --start-at-task "Set hostname" --limit cp-gw1  --execution-environment-image ee --mode stdout --pull-policy missing --container-options='--user=0'

ansible-playbook [core 2.18.5]
  config file = None
  configured module search path = ['/root/.ansible/plugins/modules', '/usr/share/ansible/plugins/modules']
  ansible python module location = /usr/local/lib/python3.13/site-packages/ansible
  ansible collection location = /root/.ansible/collections:/usr/share/ansible/collections
  executable location = /usr/local/bin/ansible-playbook
  python version = 3.13.3 (main, Apr 22 2025, 00:00:00) [GCC 14.2.1 20250110 (Red Hat 14.2.1-7)] (/usr/bin/python3)
  jinja version = 3.1.6
  libyaml = True
No config file found; using defaults
setting up inventory plugins
Loading collection ansible.builtin from
host_list declined parsing /home/user/ansible/inventories/dev/inventory.ini as it did not pass its verify_file() method
script declined parsing /home/user/ansible/inventories/dev/inventory.ini as it did not pass its verify_file() method
auto declined parsing /home/user/ansible/inventories/dev/inventory.ini as it did not pass its verify_file() method
yaml declined parsing /home/user/ansible/inventories/dev/inventory.ini as it did not pass its verify_file() method
Parsed /home/user/ansible/inventories/dev/inventory.ini inventory source with ini plugin
Loading collection community.vmware from /usr/share/ansible/collections/ansible_collections/community/vmware
[DEPRECATION WARNING]: community.vmware.vcenter_folder has been deprecated. Use
 vmware.vmware.folder instead. This feature will be removed from
community.vmware in version 7.0.0. Deprecation warnings can be disabled by
setting deprecation_warnings=False in ansible.cfg.
Loading collection check_point.gaia from /usr/share/ansible/collections/ansible_collections/check_point/gaia
Read vars_file 'inventories/dev/credentials.yml'
Read vars_file 'inventories/dev/credentials.yml'
Loading callback plugin default of type stdout, v2.0 from /usr/local/lib/python3.13/site-packages/ansible/plugins/callback/default.py
Loading callback plugin awx_display of type stdout, v2.0 from /runner/artifacts/8e0cae0e-82d3-4b45-ab08-508f29445f88/callback/awx_display.py
Skipping callback 'awx_display', as we already have a stdout callback.
Skipping callback 'default', as we already have a stdout callback.
Skipping callback 'minimal', as we already have a stdout callback.
Skipping callback 'oneline', as we already have a stdout callback.

PLAYBOOK: dev-provision-nodes.yml **********************************************
Positional arguments: /home/user/ansible/dev-provision-nodes.yml
verbosity: 4
connection: ssh
become_method: sudo
tags: ('all',)
inventory: ('/home/user/ansible/inventories/dev/inventory.ini',)
subset: cp-gw1
forks: 5
start_at_task: Set hostname
1 plays in /home/user/ansible/dev-provision-nodes.yml
Read vars_file 'inventories/dev/credentials.yml'
Read vars_file 'inventories/dev/credentials.yml'
Read vars_file 'inventories/dev/credentials.yml'

PLAY [Provision test Checkpoint nodes] *****************************************
Read vars_file 'inventories/dev/credentials.yml'

TASK [Set hostname] ************************************************************
task path: /home/user/ansible/dev-provision-nodes.yml:86
redirecting (type: connection) ansible.builtin.httpapi to ansible.netcommon.httpapi
Loading collection ansible.netcommon from /usr/share/ansible/collections/ansible_collections/ansible/netcommon
Loading collection ansible.utils from /usr/share/ansible/collections/ansible_collections/ansible/utils
setting up inventory plugins
host_list declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
Skipping due to inventory source not existing or not being readable by the current user
script declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
auto declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
Skipping due to inventory source not existing or not being readable by the current user
yaml declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
Skipping due to inventory source not existing or not being readable by the current user
ini declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
Skipping due to inventory source not existing or not being readable by the current user
toml declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
[WARNING]: No inventory was parsed, only implicit localhost is available
<192.168.1.161> attempting to start connection
<192.168.1.161> using connection plugin ansible.netcommon.httpapi
<192.168.1.161> local domain socket does not exist, starting it
<192.168.1.161> control socket path is /root/.ansible/pc/d73657d531
<192.168.1.161> Loading collection ansible.builtin from
<192.168.1.161> redirecting (type: connection) ansible.builtin.httpapi to ansible.netcommon.httpapi
<192.168.1.161> Loading collection ansible.netcommon from /usr/share/ansible/collections/ansible_collections/ansible/netcommon
<192.168.1.161> Loading collection ansible.utils from /usr/share/ansible/collections/ansible_collections/ansible/utils
<192.168.1.161> Loading collection check_point.gaia from /usr/share/ansible/collections/ansible_collections/check_point/gaia
<192.168.1.161> setting up inventory plugins
<192.168.1.161> host_list declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
<192.168.1.161> Skipping due to inventory source not existing or not being readable by the current user
<192.168.1.161> script declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
<192.168.1.161> auto declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
<192.168.1.161> Skipping due to inventory source not existing or not being readable by the current user
<192.168.1.161> yaml declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
<192.168.1.161> Skipping due to inventory source not existing or not being readable by the current user
<192.168.1.161> ini declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
<192.168.1.161> Skipping due to inventory source not existing or not being readable by the current user
<192.168.1.161> toml declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
<192.168.1.161> local domain socket listeners started successfully
<192.168.1.161> loaded API plugin ansible_collections.check_point.gaia.plugins.httpapi.checkpoint from path /usr/share/ansible/collections/ansible_collections/check_point/gaia/plugins/httpapi/checkpoint.py for platform type check_point.gaia.checkpoint
<192.168.1.161> Loading collection ansible.builtin from
<192.168.1.161> local domain socket path is /root/.ansible/pc/d73657d531
<192.168.1.161> ESTABLISH LOCAL CONNECTION FOR USER: root
<192.168.1.161> EXEC /bin/sh -c '( umask 77 && mkdir -p "` echo /root/.ansible/tmp/ansible-local-158z6cnk36 `"&& mkdir "` echo /root/.ansible/tmp/ansible-local-158z6cnk36/ansible-tmp-1747226180.160288-18-189148207900247 `" && echo ansible-tmp-1747226180.160288-18-189148207900247="` echo /root/.ansible/tmp/ansible-local-158z6cnk36/ansible-tmp-1747226180.160288-18-189148207900247 `" ) && sleep 0'
Using module file /usr/share/ansible/collections/ansible_collections/check_point/gaia/plugins/modules/cp_gaia_hostname.py
<192.168.1.161> PUT /root/.ansible/tmp/ansible-local-158z6cnk36/tmpwy1qrebz TO /root/.ansible/tmp/ansible-local-158z6cnk36/ansible-tmp-1747226180.160288-18-189148207900247/AnsiballZ_cp_gaia_hostname.py
<192.168.1.161> EXEC /bin/sh -c 'chmod u+x /root/.ansible/tmp/ansible-local-158z6cnk36/ansible-tmp-1747226180.160288-18-189148207900247/ /root/.ansible/tmp/ansible-local-158z6cnk36/ansible-tmp-1747226180.160288-18-189148207900247/AnsiballZ_cp_gaia_hostname.py && sleep 0'
<192.168.1.161> EXEC /bin/sh -c '/usr/bin/python3 /root/.ansible/tmp/ansible-local-158z6cnk36/ansible-tmp-1747226180.160288-18-189148207900247/AnsiballZ_cp_gaia_hostname.py && sleep 0'
<192.168.1.161> EXEC /bin/sh -c 'rm -f -r /root/.ansible/tmp/ansible-local-158z6cnk36/ansible-tmp-1747226180.160288-18-189148207900247/ > /dev/null 2>&1 && sleep 0'
ok: [cp-gw1] => {
    "changed": false,
    "hostname": {
        "name": "cp-gw1"
    },
    "invocation": {
        "module_args": {
            "name": "cp-gw1",
            "version": null,
            "virtual_system_id": null
        }
    }
}
PLAY RECAP *********************************************************************
cp-gw1                     : ok=2    changed=0    unreachable=0    failed=1    skipped=0    rescued=0    ignored=0

Fail in AWX:


PLAYBOOK: dev-provision-nodes.yml **********************************************
Positional arguments: ansible/dev-provision-nodes.yml
verbosity: 4
remote_user: root
connection: ssh
become_method: sudo
tags: ('test2',)
diff: True
inventory: ('/runner/inventory/hosts',)
extra_vars: ('@/runner/env/extravars',)
ask_vault_pass: True
forks: 5
1 plays in ansible/dev-provision-nodes.yml
[WARNING]: Could not match supplied host pattern, ignoring: template
Read vars_file 'inventories/dev/credentials.yml'
Read vars_file 'inventories/dev/credentials.yml'
Read vars_file 'inventories/dev/credentials.yml'
PLAY [Provision test Checkpoint nodes] *****************************************
Read vars_file 'inventories/dev/credentials.yml'

TASK [Print all hosts] *********************************************************
task path: /runner/project/ansible/dev-provision-nodes.yml:10
ok: [cp-gw1] => {
    "msg": "play_hosts=['cp-gw1']"
}
Read vars_file 'inventories/dev/credentials.yml'

TASK [Set hostname] ************************************************************
task path: /runner/project/ansible/dev-provision-nodes.yml:87
redirecting (type: connection) ansible.builtin.httpapi to ansible.netcommon.httpapi
Loading collection ansible.netcommon from /usr/share/ansible/collections/ansible_collections/ansible/netcommon
Loading collection ansible.utils from /usr/share/ansible/collections/ansible_collections/ansible/utils
setting up inventory plugins
host_list declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
Skipping due to inventory source not existing or not being readable by the current user
script declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
auto declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
Skipping due to inventory source not existing or not being readable by the current user
yaml declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
Skipping due to inventory source not existing or not being readable by the current user
ini declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
Skipping due to inventory source not existing or not being readable by the current user
toml declined parsing /etc/ansible/hosts as it did not pass its verify_file() method
fatal: [cp-gw1]: FAILED! => {
    "msg": "No inventory was parsed, please check your configuration and options."
}
PLAY RECAP *********************************************************************
cp-gw1                     : ok=1    changed=0    unreachable=0    failed=1    skipped=0    rescued=0    ignored=0  

EE spec:

---

version: 3
images:
  base_image:
    name: quay.io/fedora/fedora:41
dependencies:
  ansible_core:
    package_pip: ansible-core==2.18.5
  ansible_runner:
    package_pip: ansible-runner
  system:
    - openssh-clients
    - sshpass
    - less
  galaxy:
    collections:
    - name: ansible.posix
      version: 1.6.2
    - name: ansible.utils
      version: 5.1.2
    - name: ansible.netcommon
      version: 7.2.0
    - name: check_point.mgmt
      version: 6.4.0
    - name: check_point.gaia
      version: 7.0.0
    - name: vmware.vmware
      version: 2.0.0
    - name: community.vmware
      version: 5.6.0

additional_build_steps:
  prepend_base:
    - RUN dnf upgrade -y && dnf install -y python3 python3-pip python3-libdnf5 python3-wheel python3-devel libssh-devel gcc && dnf clean all && rm -rf /var/lib/apt/lists/*

All help is appreciated.

What EE is AWX using for the inventory sync job?

Thank you for the reply.
It is using the same EE as the template. Tried using the builtin EE now but no difference.

Output from ee (same as template):

[DEPRECATION WARNING]: ANSIBLE_COLLECTIONS_PATHS option. Reason: does not fit 
var naming standard, use the singular form ANSIBLE_COLLECTIONS_PATH instead 
Alternatives: none. This feature will be removed in version 2.19. Deprecation 
warnings can be disabled by setting deprecation_warnings=False in ansible.cfg.
ansible-inventory [core 2.18.5]
  config file = None
  configured module search path = ['/runner/.ansible/plugins/modules', '/usr/share/ansible/plugins/modules']
  ansible python module location = /usr/local/lib/python3.13/site-packages/ansible
  ansible collection location = /runner/requirements_collections:/runner/.ansible/collections:/usr/share/ansible/collections:/usr/share/automation-controller/collections
  executable location = /usr/local/bin/ansible-inventory
  python version = 3.13.3 (main, Apr 22 2025, 00:00:00) [GCC 14.2.1 20250110 (Red Hat 14.2.1-7)] (/usr/bin/python3)
  jinja version = 3.1.6
  libyaml = True
No config file found; using defaults
setting up inventory plugins
Loading collection ansible.builtin from 
host_list declined parsing /runner/project/ansible/inventories/dev/inventory.ini as it did not pass its verify_file() method
script declined parsing /runner/project/ansible/inventories/dev/inventory.ini as it did not pass its verify_file() method
auto declined parsing /runner/project/ansible/inventories/dev/inventory.ini as it did not pass its verify_file() method
yaml declined parsing /runner/project/ansible/inventories/dev/inventory.ini as it did not pass its verify_file() method
Parsed /runner/project/ansible/inventories/dev/inventory.ini inventory source with ini plugin
    8.117 INFO     Processing JSON output...
    8.117 DEBUG    Loaded group: all
    8.118 DEBUG    Loaded group: management
    8.119 DEBUG    Adding child group management to parent all
    8.120 DEBUG    Loaded group: gateway
    8.120 DEBUG    Adding child group gateway to parent all
    8.121 DEBUG    Loaded group: cluster
    8.121 DEBUG    Adding child group cluster to parent all
    8.122 DEBUG    Loaded group: dev
    8.122 DEBUG    Adding child group dev to parent all
    8.123 DEBUG    Loaded host: cp-gw1
    8.123 DEBUG    Adding host cp-gw1 to group cluster
    8.124 DEBUG    Loaded host: cp-gw2
    8.124 DEBUG    Adding host cp-gw2 to group cluster
    8.125 DEBUG    Adding child group cluster to parent all
    8.125 DEBUG    Adding host cp-gw1 to group dev
    8.126 DEBUG    Adding host cp-gw2 to group dev
    8.126 DEBUG    Loaded host: cp-mgmt
    8.127 DEBUG    Adding host cp-mgmt to group dev
    8.127 DEBUG    Adding child group dev to parent all
    8.128 DEBUG    Adding host cp-gw1 to group gateway
    8.128 DEBUG    Adding host cp-gw2 to group gateway
    8.129 DEBUG    Adding child group gateway to parent all
    8.129 DEBUG    Adding host cp-mgmt to group management
    8.132 DEBUG    Adding child group management to parent all
    8.132 DEBUG    Loaded host: template
    8.133 DEBUG    Adding host template to group all
    8.133 INFO     Loaded 4 groups, 4 hosts
    8.142 DEBUG    Inventory variables unmodified
    8.146 DEBUG    Group "cluster" variables unmodified
    8.146 DEBUG    Group "dev" variables unmodified
    8.147 DEBUG    Group "gateway" variables unmodified
    8.148 DEBUG    Group "management" variables unmodified
    8.152 DEBUG    Host "cp-gw1" variables unmodified
    8.153 DEBUG    Host "cp-gw2" variables unmodified
    8.154 DEBUG    Host "cp-mgmt" variables unmodified
    8.157 DEBUG    Host "template" variables unmodified
    8.170 DEBUG    Host "cp-gw1" already in group "cluster"
    8.175 DEBUG    Host "cp-gw2" already in group "cluster"
    8.190 DEBUG    Host "cp-gw1" already in group "dev"
    8.194 DEBUG    Host "cp-gw2" already in group "dev"
    8.195 DEBUG    Host "cp-mgmt" already in group "dev"
    8.204 DEBUG    Host "cp-gw1" already in group "gateway"
    8.206 DEBUG    Host "cp-gw2" already in group "gateway"
    8.215 DEBUG    Host "cp-mgmt" already in group "management"
    8.241 INFO     Inventory import completed for dev in 0.1s

I can add that the issue only affects check_point.gaia modules. check_point.mgmt and other like ansible.builtin work as expected.