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
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Postfix SASL authentication does not work with Dovecot SASL in default
configuration
https://bugs.launchpad.net/bugs/493667
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