@scottalanmiller is correct. I have Edgerouter 2.0.9 and it STILL requires PAP in the Windows policy. Under Config Tree, there is no way to make the router use MSCHAP or MSCHAPv2 instead of PAP (cleartext). I went to notify Ubiquiti hoping they can potentially have this included in another firmware release soon, but Ubiquiti Support was apprised of this 5 years ago! https://community.ui.com/questions/Encrypted-Radius-Supported/7857b119-91d8-4365-8c2a-8c21de0937a4