The log messages are pretty clear and informative:

[pap] WARNING! No "known good" password found for the user. Authentication
may fail because of this.
[mschap] No Cleartext-Password configured.  Cannot create LM-Password.

You have to either have a Cleartext password for the user or an ntlm hash if you're going to use ntlm_auth, apparently you don't have either defined for the user "jonathan"

--
John Dennis <jden...@redhat.com>

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