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Why?

Yes, but something doesn’t feel right about it no?

This isn't HTTP Basic Auth, though: these days git with the right Credential Managers (and Git for Windows comes with a good one built in) support OAuth Access Tokens obtained with full OAuth login flows including 2FA authentication. It's theoretically no worse than SSH PKI, and in terms of practicality is often better because it is easier and more convenient. (For the users, it is clearly more complex that "install openssh" to implement if you are trying to build a git host that supports OAuth Access Token auth.)