I wonder if your DS3524 may be trespassing the LUN to the other controller. What is the OS type that you are using on the DS3524 side?
Also, check this article, it matches the sense codes you are getting:
VMware KB: Failover fails when the LUN is configured on a LSI based storage array
VMware KB: Troubleshooting LUN connectivity issues due to IBM DS3500 using an incorrect multipathing policy (this is for 4.1, but may still apply)