Thank you for sharing your env. I tried same configurations as yours and could reproduce the error. I found out this is because of the duplicate java memory option for spark driver which are ZEPPELIN_MEM and spark.driver.memory.
What you can try as a workaround is to override ZEPPELIN_MEM by setting SPARK_SUBMIT_OPTIONS in conf/zeppelin-env.sh as below: export SPARK_SUBMIT_OPTIONS="--driver-java-options -Xmx20g" Please let me know if it works. I will create patch for this issue soon.