Why it matters in practice
The header belongs to proxy access control and should not be confused with a credential intended for an upstream API. Intermediaries need to handle it according to HTTP semantics and remove or protect it where appropriate. A proxy must not blindly forward proxy credentials to an origin server.
Example
A client sends Proxy-Authorization to its authenticated proxy while keeping the origin Authorization field reserved for api.example.com.
Educational note
This definition is general information, not legal advice. It may omit facts that matter to a specific situation and does not establish or guarantee compliance.