Strange Pop-up appldnld.apple.com:80 I received a strange Pop Up message. The unsettling part is password will be sent in clear text.

Is my phone affected with any malware or app virus ?
This is the device trying to connect to the Apple updating server, but due to a network reason at your end, you are being prompted for your password, either for your network, proxy, or other reason. This is not asking for your Apple ID but rather whatever network connection authentication details you usually use to connect to your network.