It appears that when the data transformation template is used, ExecuteSparkJob in the reusable template fails to set the env using SparkLauncher (ExecuteSparkJob.java:518).
Reproducible steps using the Kylo Sandbox AMI and AWS EMR can be found attached and on the community forum.
This presents the error "No encryption/decryption key has been configured - please see configuration documentation" in the spark logs.
I was able to get the ExecuteSparkJob working by building my own from the source code and adding the following:
Right after SparkLauncher's instantiation.
Did you alter the processor code for this workaround?
This blocks us from doing any transformation successfully.