Fixed finally. Also requires updated httpbin.org

requests/sessions.py

@@ -449,6 +449,10 @@ class Session(SessionRedirectMixin):
         r = dispatch_hook('response', hooks, r, **kwargs)
 
         # Persist cookies
+        if r.history:
+            # If the hooks create history then we want those cookies too
+            for resp in r.history:
+                extract_cookies_to_jar(self.cookies, resp.request, resp.raw)
         extract_cookies_to_jar(self.cookies, request, r.raw)
 
         # Redirect resolving generator.

test_requests.py

@@ -285,7 +285,7 @@ class RequestsTestCase(unittest.TestCase):
         self.assertEqual(r.status_code, 401)
 
         s = requests.session()
-        s.auth = auth
+        s.auth = HTTPDigestAuth('user', 'pass')
         r = s.get(url)
         self.assertEqual(r.status_code, 200)