Attaching a patch which seems to work for me. Andy / others, would be good if you can review and let me know if its ok.
I've changed the following two properties in the patch:
yarn.nodemanager.local-dirs now points to $
yarn.nodemanager.log-dirs now points to $
The latter is an incompatible change. The default value was /tmp/logs. However, since this was logs, I thought it was better to default to yarn.log.dir. Let me know if this is fine.
The other directory based configuration is yarn.nodemanager.remote-app-log-dir. However, since this is a location on HDFS typically, it seems better not to default it to variables that point to local logs.