Gitlab integration with Jenkins receiving 401 Unauthorized

I have a local Gitlab and Jenkins server running in docker. Webhooks work when merging into master and executing build but unable to get the Gitlab Jenkins integration to work. Receiving 401 unauthorized. I do see logs on Jenkins showing the response from Gitlab. I have an admin user that I have an API Token created. I am using the username and Api Token for the password but still no luck. What am I missing here? Thank you in advance.