New-SFClient Fails for ShareFile Application Specific Password

[djsifc]

I am using the ShareFile PowerShell SDK to call the ShareFile API. Interactive New-SFClient is successful with user name, password and two step verification code. New-SFClient for same account but with an application specific password, thus bypassing the 2SV requirement, fails with "Username or Password was incorrect".

[Shad0wguy]

Same issue.