CloverETL Server WebDAV API uses the HTTP Basic Authentication by default. However it may be reconfigured to use HTTP Digest Authentication. Please see Part III, “Configuration” for details.
Digest Authentication may be useful, since some WebDAV clients can't work with HTTP Basic Authentication, only with Digest Authentication.
HTTP Digest Authentication is feature added to the version 3.1. If you upgraded your older CloverETL Server distribution, users created before the upgrade cannot use the HTTP Digest Authentication until they reset their passwords. So when they reset their passwords (or the admin does it for them), they can use Digest Authentication as well as new users.