A security review of the proposed fix for PowerShell/psl-omi-provider#114 (Basic Auth over HTTP does not work from PowerShell) has determined that Basic Auth over HTTP should not be supported Linux. the primary reasons include:

1: Both credentials and payload are sent un-encrypted.
2: Neither the client nor the server (omi) provide a method for disabling this combination.
3: It's too easy for users to use PSRP in an insecure manner.

As the above issue implies, this combination is currently broken in PowerShell on Linux. Instead of fixing it, the proposed change is to explicitly disable it and report a more appropriate error message.

The recommendation going forward will be to use Negotiate which results in the following:

From the OMI/Setup NTLM doc...

• The password is hashed using an irreversable algorithm, so the password is more secure than Basic.
• The client and server support encryption of your data over http connections, so SSL certificates are not required.