REST API giving 401 even if we pass Authorization header

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We are calling a 3rd party API. And below are the setup for the service connection,

Authentication : None (Why ? Because this API has a custom Authorization scheme where we need to get token using a different URL and encrypt using crypto-js library. We are able to generate that token. No issues)

Connection Type : Always Use Proxy (Why ? Because it does not support CORS and hence want to use VB Proxy)

We have set a Custom Header called Authorization and send the token at run time. We can see that the token is sent in the request as