Can't make password protected folder to work

I spend many hours trying to set up password protection on the folder. Failed so many times.

I've created realm

I've created password DB using GUI

with multiple users there

I've created a Context with settings
So all users can access from the DB

I've check permissions on users the DB folder and even set 777 on that

The password popup is generated
But I'm always getting invalid password and in logs nothing else then User 'xxxx' failed to authenticate.

I've tried many different solutions from forums but I can't get it to work. What I'm doing wrong?

I'm on OpenLiteSpeed 1.6.11 , Centos 7

Many thanks for any help
Just wanted to say, this still isn't fixed on 1.7.16, I banged my head against this for /HOURS/ over two days before finding this and fixing the problem.

I don't seem to see a bug report made of this? Has anyone mentioned this to someone such as Cold-Egg?

This happened on a totally basic install per the manual running on Ubuntu 20.04LTS.