rest api - Wordpress 6.7 - You are not allowed to list users during API call

I am trying to get a list of all users (not just authors). I have the below script in Codeigniter 4:

class WPUserModel extends Model
{
    protected $wordpressApiUrl = '';
    protected $username = 'exampleapp';
    protected $applicationPassword = 'xxxx yyyy zzzz aaaa bbbb cccc';


    public function getAllUsers(): array
    {
        
        $client = \Config\Services::curlrequest();

        $authHeader = 'Basic ' . base64_encode("{$this->username}:{$this->applicationPassword}");
   
        echo $authHeader;
    
        $users = [];
        $page = 1;
        $perPage = 100;

        try {
            while (true) {
                $response = $client->request('GET', $this->wordpressApiUrl, [
                    'headers' => [
                        'Authorization' => $authHeader,
                    ],
                    'query' => [
                        'per_page' => $perPage,
                        'page' => $page,
                        'context' => 'edit',
                    ],
                ]);

                $data = json_decode($response->getBody(), true);

                if (empty($data)) {
                    break;
                }

                $users = array_merge($users, $data);
                $page++;
            }

        } catch (HTTPException $e) {
            log_message('error', 'HTTP error: ' . $e->getMessage());
            print_r( $e->getMessage());
            return [];
        } catch (\Exception $e) {
            log_message('error', 'An error occurred: ' . $e->getMessage());
            print_r( $e->getMessage());
            return [];
        }

        return $users;
    }
}

The above give the follow message:

The requested URL returned error: 401

When I run from the command line, I get the same message.

    {"code":"rest_forbidden_context","message":"Sorry, you are not allowed to list users.","data":{"status":401}}

I am using a user that has admin rights and an application username and password.

BTW, wordpress give the app password with spaces in it. I have tried with and without the spaces but no luck.

Additionally, I am able to reach the posts endpoint and obtain post data. It is just my application username/password which I wish to obtain a complete list of users which is not working. Also, for info, this is what I issue on the command line which the same error as mentioned above:

curl -u "exampleapp:xxxx yyyy zzzz aaaa bbbb cccc" ";

I do see from the documentation that passwords can be with or without spaces and if there are spaces, wordpress will remove them. Nevertheless, I tried both ways and same result.

How can I get a list of all users? Any tips appreciated.