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We've had a similar issue: same error message, different stacktrace. Strangely, the update would run fine, but calculating changelog would result in error svn: E200015: authentication cancelled
Upgrading working copy format to 1.7 or 1.8 fixed the problem for us.
Can you check your workspace svn working copy version? (try http://stackoverflow.com/a/1364648/2563933)
Upgrade with
svn upgrade <workspace-path>
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