smtpd_tls_auth_only = yes means it will only offer auth if you connect vial TLS (which you aren't doing when you telnet) so it is correct to not offer it.
** Changed in: postfix (Ubuntu) Status: New => Invalid -- Postfix SASL authentication does not work with Dovecot SASL in default configuration https://bugs.launchpad.net/bugs/493667 You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs