Have you created a Authdomain named HADOOP in SMC which contains the user id and password. If not, then either create the authdomain in SMC or pass the userid and password through username= and password= in proc hadoop. The error means that in your metadata foundation repository, authdomain HADOOP is not present. It has nothing to do with wrong installation of hadoop. Yes, SAS Access to Hadoop is required to execute Proc Hadoop but seeing your log, I feel that you have that installed and configured.
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