Clientless iRule to eliminate 302 redirect not working

We have an application that is making a call to a virtual server with an APM policy attached. The policy is simple, its a 401 followed by authentication and then a variable assign to pass on the back end to the server.

The application is providing the basic authentication credentials when making the call, however despite the irule we added we are still seeing the 302 redirect come back to the client on the initial call. Looking for some help in figuring out how to eliminate this.

This works ok when we use a browser however this does not work well for the application using a SOAP call.