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If nsupdate_gss is configured in /etc/foreman-proxy/settings.d/dns.yml, an enabled dns_key results in a failure to update
the dns entry:

UI Error:
Create DNS record for dnstest.lnx.aaxc.org task failed with the following error: ERF12-2357 [ProxyAPI::ProxyException]:
Unable to set DNS entry ([RestClient::BadRequest]: 400 Bad Request) for proxy https://katello.somedomain:9090/dns

Error if dns_key is uncommented:
D, [2015-05-09T19:26:58.516489 #11223] DEBUG -- : Kerberos credential cache initialised with principal: foremanproxy/katello.somedomain@SOMEDOMAIN
D, [2015-05-09T19:26:58.517958 #11223] DEBUG -- : running /usr/bin/nsupdate k /etc/rndc.key -g
E, [2015-05-09T19:26:58.538523 #11223] ERROR - : Broken pipe
D, [2015-05-09T19:26:58.538675 #11223] DEBUG -- : /usr/share/foreman-proxy/modules/dns/providers/nsupdate.rb:88:in `write'

Works if dns_key is removed:
D, [2015-05-09T19:30:59.772357 #11649] DEBUG -- : Kerberos credential cache initialised with principal: foremanproxy/katello.somedomain@SOMEDOMAIN
D, [2015-05-09T19:30:59.772633 #11649] DEBUG -- : running /usr/bin/nsupdate g
D, [2015-05-09T19:30:59.778613 #11649] DEBUG - : nsupdate: executed - server 192.168.x.x

As i don't have a Microsoft DNS server i could not verify that this only happens if you use IPA.