Getting 401 from ajax using an application password

Got the following code running on a local wordpress install. I have created an application password for the admin user but am still getting a 401 unauthorised. What am i missing?

Here’s the code

jQuery.ajax({
                    type: "POST",
                    dataType: "json",
                    url: 'http://the-lead-magnet-company.local/wp-json/wp/v2/posts',
                    data: JSON.stringify({  
                    title: me.title(),
                    content: 'Here is some content',
                    status: 'published'
                    }),
                    beforeSend: function ( xhr ) {
                        xhr.setRequestHeader('Authorization', 'Basic admin:DqfX r0YT hQE5 lsgu 2Y7d PJv5');
                    },
                    success: function (data) {
                        alert("posted");
                    },
                    error: function (error) {
                        alert("FAILD:" + error);
                    }
                });