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CAC authentication issue

Hi everyone. I'm having an issue with Oracle Business Intelligence 12.2.1.1.0 that I'm hoping someone could help me with.
Thanks so much in advance for your feedback.
Background:
I successfully moved from OBI 11g to the 12.2.1.1.0. I opted to do a fresh install of everything rather than using the various migration scripts available.
I successfully installed/configured OBI 12.2.1.1.0. I deployed several BI reports (that access an Oracle database using JDBC).
I also enabled/configured/enforced SSL two-way authentication using production type Certs (no self-signed). Users must use their CAC/PIV cards to login (by selecting a valid certificate and entering their PIN).
Everything works as expected except for this random issue:
Issue:
When invoking our project OBI reports occasionally a pop-up will display, prompting the user to enter a valid userid/password. The issue is that users do NOT have userid/password to enter in the pop-up window! Users use their CAC/PIV cards to login instead (by selecting a valid Cert and entering their Pin number).
In other words, WebLogic 12.2.1.1.0 appears to switch to Basic Authentication instead of enforcing the CAC/PIV authentication configured.
To make matters worse this issue appears occasionally and I cannot reproduce it. When the issue appears, restarting the obis1 service solves the problem and users are prompted again to select their CAC/PIV certificate and enter their PIN number.
I only see Errors in the obis1-diagnostic.log.
Note: I masked the URLs for obvious reasons.