diff --git a/.licenses/npm/@actions/http-client.dep.yml b/.licenses/npm/@actions/http-client.dep.yml
index cdccff4e..1bf161b7 100644
--- a/.licenses/npm/@actions/http-client.dep.yml
+++ b/.licenses/npm/@actions/http-client.dep.yml
@@ -1,6 +1,6 @@
 ---
 name: "@actions/http-client"
-version: 2.2.1
+version: 2.2.3
 type: npm
 summary: Actions Http Client
 homepage: https://github.com/actions/toolkit/tree/main/packages/http-client
diff --git a/dist/cache-save/index.js b/dist/cache-save/index.js
index 22ad6fe9..125299e9 100644
--- a/dist/cache-save/index.js
+++ b/dist/cache-save/index.js
@@ -9362,7 +9362,7 @@ class HttpClient {
         }
         const usingSsl = parsedUrl.protocol === 'https:';
         proxyAgent = new undici_1.ProxyAgent(Object.assign({ uri: proxyUrl.href, pipelining: !this._keepAlive ? 0 : 1 }, ((proxyUrl.username || proxyUrl.password) && {
-            token: `${proxyUrl.username}:${proxyUrl.password}`
+            token: `Basic ${Buffer.from(`${proxyUrl.username}:${proxyUrl.password}`).toString('base64')}`
         })));
         this._proxyAgentDispatcher = proxyAgent;
         if (usingSsl && this._ignoreSslError) {
@@ -9476,11 +9476,11 @@ function getProxyUrl(reqUrl) {
     })();
     if (proxyVar) {
         try {
-            return new URL(proxyVar);
+            return new DecodedURL(proxyVar);
         }
         catch (_a) {
             if (!proxyVar.startsWith('http://') && !proxyVar.startsWith('https://'))
-                return new URL(`http://${proxyVar}`);
+                return new DecodedURL(`http://${proxyVar}`);
         }
     }
     else {
@@ -9539,6 +9539,19 @@ function isLoopbackAddress(host) {
         hostLower.startsWith('[::1]') ||
         hostLower.startsWith('[0:0:0:0:0:0:0:1]'));
 }
+class DecodedURL extends URL {
+    constructor(url, base) {
+        super(url, base);
+        this._decodedUsername = decodeURIComponent(super.username);
+        this._decodedPassword = decodeURIComponent(super.password);
+    }
+    get username() {
+        return this._decodedUsername;
+    }
+    get password() {
+        return this._decodedPassword;
+    }
+}
 //# sourceMappingURL=proxy.js.map
 
 /***/ }),
diff --git a/dist/setup/index.js b/dist/setup/index.js
index dd670a20..540e14de 100644
--- a/dist/setup/index.js
+++ b/dist/setup/index.js
@@ -10554,7 +10554,7 @@ class HttpClient {
         }
         const usingSsl = parsedUrl.protocol === 'https:';
         proxyAgent = new undici_1.ProxyAgent(Object.assign({ uri: proxyUrl.href, pipelining: !this._keepAlive ? 0 : 1 }, ((proxyUrl.username || proxyUrl.password) && {
-            token: `${proxyUrl.username}:${proxyUrl.password}`
+            token: `Basic ${Buffer.from(`${proxyUrl.username}:${proxyUrl.password}`).toString('base64')}`
         })));
         this._proxyAgentDispatcher = proxyAgent;
         if (usingSsl && this._ignoreSslError) {
@@ -10668,11 +10668,11 @@ function getProxyUrl(reqUrl) {
     })();
     if (proxyVar) {
         try {
-            return new URL(proxyVar);
+            return new DecodedURL(proxyVar);
         }
         catch (_a) {
             if (!proxyVar.startsWith('http://') && !proxyVar.startsWith('https://'))
-                return new URL(`http://${proxyVar}`);
+                return new DecodedURL(`http://${proxyVar}`);
         }
     }
     else {
@@ -10731,6 +10731,19 @@ function isLoopbackAddress(host) {
         hostLower.startsWith('[::1]') ||
         hostLower.startsWith('[0:0:0:0:0:0:0:1]'));
 }
+class DecodedURL extends URL {
+    constructor(url, base) {
+        super(url, base);
+        this._decodedUsername = decodeURIComponent(super.username);
+        this._decodedPassword = decodeURIComponent(super.password);
+    }
+    get username() {
+        return this._decodedUsername;
+    }
+    get password() {
+        return this._decodedPassword;
+    }
+}
 //# sourceMappingURL=proxy.js.map
 
 /***/ }),