Just thought I should clarify this a bit more, what "clear text" means in this scenario is that the username and password are sent as they are and not as a hash you typically see with NTLM or Kerberos authentication. The actual data is doubly encrypted/wrapped during the authentication process with
* The wrap method of the underlying auth used, either NTLM (RC4) or Kerberos (AES256), then
* TLS encrypted based on the session setup in CredSSP auth
So yes it is inherently more insecure compared to Kerberos, and to an extent NTLM, as the credentials are sent as is but the value is still protected through 2 layers of encryption meaning someone sniffing the network packets won't be able to see it.
Thanks
Jordan