Jenkins stopped authorize via Gitlab after upgrading to 10.7

Summary

Jenkins stopped authorize via GitLab after upgrading to 10.7 from 10.6.4. It simply redirects back to the same authorization screen after clicking on the green Authorize button. This is not a first time we have authorization issues after GitLab upgrade.

Steps to reproduce

Configure Jenkins to authorize via Gitlab and try to authorize.

What is the current bug behavior?

It simply redirects back to the same GitLab authorization screen after clicking on the green Authorize button.

What is the expected correct behavior?

Authorize correctly and redirect to Jenkins.

Output of checks

This happens on self hosted GitLab CE instance.

Results of GitLab environment info

System information
System:		Ubuntu 16.04
Current User:	git
Using RVM:	no
Ruby Version:	2.3.6p384
Gem Version:	2.6.13
Bundler Version:1.13.7
Rake Version:	12.3.0
Redis Version:	3.2.11
Git Version:	2.14.3
Sidekiq Version:5.0.5
Go Version:	unknown

GitLab information
Version:	10.7.0
Revision:	2011c9b
Directory:	/opt/gitlab/embedded/service/gitlab-rails
DB Adapter:	postgresql
URL:		https://gitlab.example.com
HTTP Clone URL:	https://gitlab.example.com/some-group/some-project.git
SSH Clone URL:	ssh://git@gitlab.example.com:22/some-group/some-project.git
Using LDAP:	no
Using Omniauth:	no

GitLab Shell
Version:	7.1.2
Repository storage paths:
- default: 	/var/opt/gitlab/git-data/repositories
Hooks:		/opt/gitlab/embedded/service/gitlab-shell/hooks
Git:		/opt/gitlab/embedded/bin/git

Results of GitLab application Check

Checking GitLab Shell ...

GitLab Shell version >= 7.1.2 ? ... OK (7.1.2)
Repo base directory exists?
default... yes
Repo storage directories are symlinks?
default... no
Repo paths owned by git:root, or git:git?
default... yes
Repo paths access is drwxrws---?
default... yes
hooks directories in repos are links: ... 
3/3 ... ok
3/4 ... ok
3/6 ... ok
3/8 ... wrong or missing hooks
  Try fixing it:
  sudo -u git -H /opt/gitlab/embedded/service/gitlab-shell/bin/create-hooks /var/opt/gitlab/git-data/repositories
  Check the hooks_path in config/gitlab.yml
  Check your gitlab-shell installation
  For more information see:
  doc/install/installation.md in section "GitLab Shell"
  Please fix the error above and rerun the checks.
3/9 ... ok
3/10 ... ok
3/11 ... ok
3/12 ... ok
3/15 ... ok
8/16 ... ok
3/17 ... ok
3/18 ... ok
3/20 ... ok
3/21 ... ok
3/22 ... ok
3/23 ... ok
3/24 ... ok
3/25 ... ok
3/26 ... ok
3/27 ... ok
3/28 ... ok
3/30 ... ok
3/32 ... ok
3/33 ... ok
3/34 ... ok
3/35 ... ok
3/37 ... ok
3/38 ... repository is empty
3/39 ... ok
3/40 ... ok
3/42 ... ok
3/43 ... ok
3/47 ... ok
3/48 ... ok
3/49 ... ok
3/50 ... ok
3/51 ... ok
3/52 ... ok
3/53 ... ok
3/54 ... ok
3/55 ... ok
3/57 ... ok
3/58 ... ok
3/59 ... ok
3/60 ... ok
3/61 ... ok
3/63 ... ok
3/64 ... repository is empty
3/65 ... ok
3/67 ... ok
3/69 ... ok
3/71 ... ok
3/72 ... ok
3/73 ... ok
3/75 ... ok
3/76 ... ok
3/77 ... ok
3/78 ... ok
3/79 ... ok
3/80 ... ok
3/81 ... ok
3/82 ... ok
3/83 ... ok
3/84 ... ok
3/85 ... ok
3/86 ... ok
3/87 ... ok
3/88 ... ok
3/89 ... ok
3/90 ... ok
3/91 ... ok
3/92 ... ok
3/93 ... ok
3/94 ... ok
3/95 ... ok
3/96 ... ok
3/97 ... ok
3/98 ... ok
3/99 ... ok
3/100 ... ok
3/101 ... ok
3/102 ... ok
3/103 ... ok
Running /opt/gitlab/embedded/service/gitlab-shell/bin/check
Check GitLab API access: OK
Redis available via internal API: OK

Access to /var/opt/gitlab/.ssh/authorized_keys: OK
gitlab-shell self-check successful

Checking GitLab Shell ... Finished

Checking Sidekiq ...

Running? ... yes
Number of Sidekiq processes ... 1

Checking Sidekiq ... Finished

Reply by email is disabled in config/gitlab.yml
Checking LDAP ...

LDAP is disabled in config/gitlab.yml

Checking LDAP ... Finished

Checking GitLab ...

Git configured correctly? ... yes
Database config exists? ... yes
All migrations up? ... yes
Database contains orphaned GroupMembers? ... no
GitLab config exists? ... yes
GitLab config up to date? ... yes
Log directory writable? ... yes
Tmp directory writable? ... yes
Uploads directory exists? ... yes
Uploads directory has correct permissions? ... yes
Uploads directory tmp has correct permissions? ... yes
Init script exists? ... skipped (omnibus-gitlab has no init script)
Init script up-to-date? ... skipped (omnibus-gitlab has no init script)
Projects have namespace: ... 
3/3 ... yes
3/4 ... yes
3/6 ... yes
3/8 ... yes
3/9 ... yes
3/10 ... yes
3/11 ... yes
3/12 ... yes
3/15 ... yes
8/16 ... yes
3/17 ... yes
3/18 ... yes
3/20 ... yes
3/21 ... yes
3/22 ... yes
3/23 ... yes
3/24 ... yes
3/25 ... yes
3/26 ... yes
3/27 ... yes
3/28 ... yes
3/30 ... yes
3/32 ... yes
3/33 ... yes
3/34 ... yes
3/35 ... yes
3/37 ... yes
3/38 ... yes
3/39 ... yes
3/40 ... yes
3/42 ... yes
3/43 ... yes
3/47 ... yes
3/48 ... yes
3/49 ... yes
3/50 ... yes
3/51 ... yes
3/52 ... yes
3/53 ... yes
3/54 ... yes
3/55 ... yes
3/57 ... yes
3/58 ... yes
3/59 ... yes
3/60 ... yes
3/61 ... yes
3/63 ... yes
3/64 ... yes
3/65 ... yes
3/67 ... yes
3/69 ... yes
3/71 ... yes
3/72 ... yes
3/73 ... yes
3/75 ... yes
3/76 ... yes
3/77 ... yes
3/78 ... yes
3/79 ... yes
3/80 ... yes
3/81 ... yes
3/82 ... yes
3/83 ... yes
3/84 ... yes
3/85 ... yes
3/86 ... yes
3/87 ... yes
3/88 ... yes
3/89 ... yes
3/90 ... yes
3/91 ... yes
3/92 ... yes
3/93 ... yes
3/94 ... yes
3/95 ... yes
3/96 ... yes
3/97 ... yes
3/98 ... yes
3/99 ... yes
3/100 ... yes
3/101 ... yes
3/102 ... yes
3/103 ... yes
Redis version >= 2.8.0? ... yes
Ruby version >= 2.3.5 ? ... yes (2.3.6)
Git version >= 2.9.5 ? ... yes (2.14.3)
Git user has default SSH configuration? ... yes
Active users: ... 11

Checking GitLab ... Finished