Environment variables not getting used for authorization

My setup is as follows:

Environment contains a variable named rest_token, with an initial value set. The collection is set to use Basic auth, with {{rest_token}} as username. And the request is set to inherit auth from parent.

When I execute the request, I receive a 401 unauthorized. But if I edit the request to use Basic auth and provide the same value as username, it authenticates correctly.

What am I doing wrong?

thanks!

Never mind. When I hit Reset All in the environment it began working.