0x98e is:

$ ./tpm2_rc_decode 0x98e
error layer
  hex: 0x0
  identifier: TSS2_TPM_RC_LAYER
  description: Error produced by the TPM
format 1 error code
  hex: 0x0e
  identifier: TPM2_RC_AUTH_FAIL
  description: the authorization HMAC check failed and DA counter incremented
session
  hex: 0x100
  identifier: TPM2_RC_1
  description:  (null)

SO it looks like you're not setting up the auth properly in the session.

> -----Original Message-----
> From: tpm2 [mailto:tpm2-bounces(a)lists.01.org] On Behalf Of Yasuhiro Hosoda
> Sent: Wednesday, December 13, 2017 10:59 PM
> To: tpm2(a)lists.01.org
> Subject: [tpm2] tpm2-tss question
> 
> MY name is Yasuhiro Hosoda.
> 
> 
> I am developing a program using TSS1.0(Nov１．2016).
> I encountered a problem with PolicySecret error 0x98e and need help.
> My program uses tpmtest.cpp as a base of development.
> The situation is as follows:
> 
> 1 Create TPM Keys like this.
> 
> EK
> ｜--------
> ｜          |
> MK       AK
> ｜
> SK
> 
> 2 Execute PolicySecret twice using HMAC session. At first, it ends without error.
> Then it ends with 0x98e For clarification, I print out the values of Virtual Handle
> and Real Handle.
> The value of Virtual/Real Handles differ at 2nd excution of the command.
> (See NO 25/26 Below)
> 
> I understand that the resource manager assigns Virtual Handle and my program
> calculates HMAC using that handles.
> On the other hand, TPM may calculate HMAC using Real Handle.
> That is my hypothesis.
> 
> Any suggestion about the usage of Session Handle?
> 
> NO      Command           Virtual/Real Handle         LOC 1.    CreatePrimary(EK)
> real=80000000, virtual=80000000 8381 2.    HierarchyChangeAuth1 8421
> 3.    HierarchyChangeAuth2 8431 4.    StartAuthSession(Policy) real=3000000,
> virtual=3000000 8480 5.    PolicySecret(ENDORSEMENT) 8494 6.    Create(MK) 8515
> 7.    PolicySecret(ENDORSEMENT) 8529 8.    Load(MK) real=80000001,
> virtual=80000001 8542 9.    Evict(MK) 8552 10.    Create(SK) 8590 11.    Load(SK)
> real=80000001, virtual=80000002 8598 12.    PolicySecret(ENDORSEMENT) 8609
> 13.    Create(AK) 8635 14.    PolicySecret(ENDORSEMENT) 8645 15.    Load(AK)
> real=80000001, virtual=80000003 8655 16.    FlushContext(POLICY) 8664
> 17.    StartAuthSession(POLICY) real=3000000, virtual=3000000 8668
> 18.    StartAuthSession(HMAC) real=2000001, virtual=2000001 8678
> 19.    ComputeCommandHMAC(LoadExternal) real=80000000, virtual=80000004
> 3706 20.    ComputeCommandHMAC(HMAC_Start) real=80000001,
> virtual=80000005 3706 21.    PolicySecret(SK) 8711 22.    FlushContext(HMAC) 8717
> 23.    FlushContext(POLICY) 8724 24.    CertifyCreation(SK) 8738
> 25.    StartAuthSession(POLICY) real=3000000, virtual=3000001 8745
> 26.    StartAuthSession(HMAC) real=2000001, virtual=2000000 8754
> 27.    ComputeCommandHMAC(LoadExternal) real=80000000, virtual=80000005
> 8782 28.    ComputeCommandHMAC(HMAC_Start) real=80000001,
> virtual=80000004 8782 29.    PolicySecret(SK) 8789
> 
> The whole  source program can be found here.
> https://github.com/intel/tpm2-tss/files/1516612/tpmtest.cpp_0x98e_2.txt
> 
> 
> Kind regards,
> 
> --
> Yasuhiro Hosoda
> 
> NTT Electronics Corporation （NEL)
> Security Support Project
> 
> 
> _______________________________________________
> tpm2 mailing list
> tpm2(a)lists.01.org
> https://lists.01.org/mailman/listinfo/tpm2