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The FEDSQL procedure might generate incorrect results when the following is true:

You use two LIBNAME statements and at least one reference to a database management system (DBMS). If they both reference a DBMS, they can reference different DBMSs or they can reference the same DBMS and the SCHEMA= option is the only difference in the two LIBNAME statements.
You join two tables in a subquery.
You join a table with the subquery using outer join syntax (INNER, LEFT, or RIGHT JOIN).

Here is one example of a query that might generate the results. In your code, the LIBNAME statements will point to your database and to a database or a SAS library.

libname lib1 ...;
libname lib2 ...;

data lib2.TEST1;
gender='M';
output;
gender='';
output;
run;

data lib1.TEST2;
x=1;
code='M';
output;
code='F';
output;
code='o';
output;
run;

data lib1.TEST3;
x=1;
run;

proc fedsql ;
create table cartesian as
select *
from lib2."TEST1" source
inner join
(select a.*
from lib1."TEST2" a ,lib1."TEST3" b where a.x=b.x) sq
on source.gender=sq.code;

The workaround for the INNER JOIN is to use a comma with a WHERE clause instead of the INNER JOIN with the ON clause syntax. There is no workaround for the LEFT or RIGHT JOIN.