Workflow manager Service Bus 407 error

Question

After installing and configuring Workflow Manager on SharePoint 2013 farm I am able to create workflows in SP Designer in 2013 and publish them on the server with no errors. New workflows do show up in the application, but will not run. I found
the indication in ULS that something went wrong 
Workflow revision number mismatch! Current workflow store revision is 13 and workflow host scope has revision 0
Operational event viewer logs on the Workflow Manager Host showing up these events:
Log Name: Microsoft-Workflow/Operational
Source: Microsoft-Workflow
Date: 5/2/2014 2:00:31 PM
Event ID: 22
Task Category: (65512)
Level: Warning
Keywords: Dispatcher,Management
User: domain\user
Computer: FQDN
Description:
Service Bus exception swallowed at location ServiceBusNamespaceListener.GetSessionAndStateWithRetryAsyncResult.HandleException. System.UnauthorizedAccessException: The token provider was unable to provide a security token while accessing 'https://fqdn:9355/WorkflowDefaultNamespace/$STS/Windows/'. Token provider returned message: ''. ---> System.IdentityModel.Tokens.SecurityTokenException: The token provider was unable to provide a security token while accessing 'https://FQDN:9355/WorkflowDefaultNamespace/$STS/Windows/'. Token provider returned message: ''. ---> System.Net.WebException: The remote server returned an error: (407) Proxy Authentication Required.
at System.Net.HttpWebRequest.GetRequestStream(TransportContext& context)
at System.Net.HttpWebRequest.GetRequestStream()
at Microsoft.ServiceBus.TokenProviderHelper.GetWindowsAccessTokenCore(IEnumerator`1 stsUris, Func`2 uriBuilder, String requestToken, TimeSpan timeout, DateTime& expiresIn)
--- End of inner exception stack trace ---
at Microsoft.ServiceBus.TokenProviderHelper.ThrowException(Uri requestUri, WebException exception)
at Microsoft.ServiceBus.TokenProviderHelper.GetWindowsAccessTokenCore(IEnumerator`1 stsUris, Func`2 uriBuilder, String requestToken, TimeSpan timeout, DateTime& expiresIn)
at Microsoft.ServiceBus.WindowsTokenProvider.OnBeginGetToken(String appliesTo, String action, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.TokenProvider.GetTokenAsyncResult..ctor(TokenProvider tokenProvider, String appliesTo, String action, Boolean bypassCache, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.TokenProvider.BeginGetToken(String appliesTo, String action, Boolean bypassCache, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.TokenProviderUtility.GetMessagingToken(ITokenProvider tokenProvider, Uri baseAddress, String appliesTo, String action, Boolean bypassCache, TimeSpan timeout)
--- End of inner exception stack trace ---
Server stack trace:
at Microsoft.ServiceBus.TokenProviderUtility.GetMessagingToken(ITokenProvider tokenProvider, Uri baseAddress, String appliesTo, String action, Boolean bypassCache, TimeSpan timeout)
at Microsoft.ServiceBus.Messaging.Sbmp.SbmpMessageCreator.GetAuthorizationHeader(String action)
at Microsoft.ServiceBus.Messaging.Sbmp.SbmpMessageCreator.CreateWcfMessageInternal(String action, Object body, Boolean includeToken)
at Microsoft.ServiceBus.Messaging.Sbmp.AcceptMessageSessionForNamespaceAsyncResult..ctor(SbmpMessagingFactory messagingFactory, ReceiveMode receiveMode, Int32 prefetchCount, CreateControlLinkSettings controlLinkSettings, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.Messaging.Sbmp.SbmpMessagingFactory.OnBeginAcceptMessageSession(ReceiveMode receiveMode, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.Messaging.MessagingFactory.AcceptMessageSessionAsyncResult.<GetAsyncSteps>b__29(AcceptMessageSessionAsyncResult thisPtr, TimeSpan t, AsyncCallback c, Object s)
at Microsoft.ServiceBus.Messaging.IteratorAsyncResult`1.EnumerateSteps(CurrentThreadType state)
Exception rethrown at [0]:
at Microsoft.Workflow.Common.AsyncResult.End[TAsyncResult](IAsyncResult result)
at Microsoft.Workflow.Dispatcher.ServiceBusNamespaceListener.GetSessionAndStateWithRetryAsyncResult.EndAsyncResult(IAsyncResult result)
at Microsoft.Workflow.Common.BackoffRetryAsyncResult.IsolateWithRetry(IAsyncResult result)
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
<System>
<Provider Name="Microsoft-Workflow" Guid="{B2885F6E-231C-43FF-BBEA-7516148FF6FE}" />
<EventID>22</EventID>
<Version>0</Version>
<Level>3</Level>
<Task>65512</Task>
<Opcode>0</Opcode>
<Keywords>0x4000000000000210</Keywords>
<TimeCreated SystemTime="2014-05-02T18:00:31.600519200Z" />
<EventRecordID>323735</EventRecordID>
<Correlation ActivityID="{C756E6D1-A7DC-4DA5-BA9D-D38DFD199CBC}" />
<Execution ProcessID="4084" ThreadID="4112" />
<Channel>Microsoft-Workflow/Operational</Channel>
<Computer>FQDN</Computer>
<Security UserID="S-1-5-21-436374069-1326574676-725345543-5309" />
</System>
<EventData>
<Data Name="location">ServiceBusNamespaceListener.GetSessionAndStateWithRetryAsyncResult.HandleException</Data>
<Data Name="exception">System.UnauthorizedAccessException: The token provider was unable to provide a security token while accessing 'https://********************:9355/WorkflowDefaultNamespace/$STS/Windows/'. Token provider returned message: ''. ---&gt; System.IdentityModel.Tokens.SecurityTokenException: The token provider was unable to provide a security token while accessing 'https://****************:9355/WorkflowDefaultNamespace/$STS/Windows/'. Token provider returned message: ''. ---&gt; System.Net.WebException: The remote server returned an error: (407) Proxy Authentication Required.
at System.Net.HttpWebRequest.GetRequestStream(TransportContext&amp; context)
at System.Net.HttpWebRequest.GetRequestStream()
at Microsoft.ServiceBus.TokenProviderHelper.GetWindowsAccessTokenCore(IEnumerator`1 stsUris, Func`2 uriBuilder, String requestToken, TimeSpan timeout, DateTime&amp; expiresIn)
--- End of inner exception stack trace ---
at Microsoft.ServiceBus.TokenProviderHelper.ThrowException(Uri requestUri, WebException exception)
at Microsoft.ServiceBus.TokenProviderHelper.GetWindowsAccessTokenCore(IEnumerator`1 stsUris, Func`2 uriBuilder, String requestToken, TimeSpan timeout, DateTime&amp; expiresIn)
at Microsoft.ServiceBus.WindowsTokenProvider.OnBeginGetToken(String appliesTo, String action, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.TokenProvider.GetTokenAsyncResult..ctor(TokenProvider tokenProvider, String appliesTo, String action, Boolean bypassCache, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.TokenProvider.BeginGetToken(String appliesTo, String action, Boolean bypassCache, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.TokenProviderUtility.GetMessagingToken(ITokenProvider tokenProvider, Uri baseAddress, String appliesTo, String action, Boolean bypassCache, TimeSpan timeout)
--- End of inner exception stack trace ---
Server stack trace:
at Microsoft.ServiceBus.TokenProviderUtility.GetMessagingToken(ITokenProvider tokenProvider, Uri baseAddress, String appliesTo, String action, Boolean bypassCache, TimeSpan timeout)
at Microsoft.ServiceBus.Messaging.Sbmp.SbmpMessageCreator.GetAuthorizationHeader(String action)
at Microsoft.ServiceBus.Messaging.Sbmp.SbmpMessageCreator.CreateWcfMessageInternal(String action, Object body, Boolean includeToken)
at Microsoft.ServiceBus.Messaging.Sbmp.AcceptMessageSessionForNamespaceAsyncResult..ctor(SbmpMessagingFactory messagingFactory, ReceiveMode receiveMode, Int32 prefetchCount, CreateControlLinkSettings controlLinkSettings, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.Messaging.Sbmp.SbmpMessagingFactory.OnBeginAcceptMessageSession(ReceiveMode receiveMode, TimeSpan timeout, AsyncCallback callback, Object state)
at Microsoft.ServiceBus.Messaging.MessagingFactory.AcceptMessageSessionAsyncResult.&lt;GetAsyncSteps&gt;b__29(AcceptMessageSessionAsyncResult thisPtr, TimeSpan t, AsyncCallback c, Object s)
at Microsoft.ServiceBus.Messaging.IteratorAsyncResult`1.EnumerateSteps(CurrentThreadType state)
Exception rethrown at [0]:
at Microsoft.Workflow.Common.AsyncResult.End[TAsyncResult](IAsyncResult result)
at Microsoft.Workflow.Dispatcher.ServiceBusNamespaceListener.GetSessionAndStateWithRetryAsyncResult.EndAsyncResult(IAsyncResult result)
at Microsoft.Workflow.Common.BackoffRetryAsyncResult.IsolateWithRetry(IAsyncResult result)</Data>
</EventData>
</Event>
no proxy is configured on the system and gateway address is accurate.

Answer 1

are you accessing the site from your local machine or on the server? also could you please tell us if your sharepoint server and Client
are on same domain.  Looks Like Token services having the issue.
As i saw you are using the SSL, check the below post may help.
http://social.technet.microsoft.com/wiki/contents/articles/13708.installing-workflow-manager-failed-with-could-not-establish-trust-relationship-for-the-ssltls-secure-channel.aspx
Please remember to mark your question as answered &Vote helpful,if this solves/helps your problem. ****************************************************************************************** Thanks -WS MCITP(SharePoint 2010, 2013) Blog: http://wscheema.com/blog