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In order to use .htaccess files for Basic Authentication you will need to make sure that in your Apache configuration you’ve set AllowOverrride All. Check your virtualhost configuration in /etc/apache2/sites-enabled Without this setting, .htaccess files are not allowed to override default settings on a per directory basis.
Example:
<Directory /var/www/html/>
Options Indexes FollowSymLinks
AllowOverride All
</Directory>