To enable CRAM-MD5, DIGEST-MD5, or APOP mechanisms, you must configure the Directory Server to store passwords in cleartext as follows:
In Console, open the Directory Server you want to configure.
Click the Configuration tab.
Open Data in the left pane.
Click Passwords in the right pane.
From the Password encryption drop-down list, choose “cleartext”.
This change only impacts users created in the future. Existing users will have to transition or have their password reset after this change.