In my case, serverclass was correct but the app was not present in the repository. corrected that issue and restarted splunk on deployment server.
while the app was missing, clients were getting the handshake error noted above every 60 seconds. my phoneHomeInterval is set to 4 hours but the handShakeRetry (undefined) was recurring every 60 seconds. With thousands of deployment clients, the constant retries were overrunning our deployment server.
eventually, I got the message "DeploymentClient has been asked to redo-handshake. Resetting to initial state." after that, the app downloaded and I didn't get the handshake error any more.
lessons learned? don't forget to put app in in repository. don't assume that handShakeRetry tracks with customized phoneHomeIntervalInSecs value.
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