"535 5.7.8 Error: authentication failed: authentication failure"

telnet 10.65.60.23 25
Trying 10.65.60.23...
Connected to 10.65.60.23.
Escape character is '^]'.
220 jira.radwarecloud.com ESMTP Postfix
EHLO local.domain.name
250-jira.radwarecloud.com
250-PIPELINING
250-SIZE 10240000
250-VRFY
250-ETRN
250-STARTTLS
250-AUTH DIGEST-MD5 CRAM-MD5 NTLM PLAIN LOGIN
250-ENHANCEDSTATUSCODES
250-8BITMIME
250 DSN
auth login

smtpd_banner = $myhostname ESMTP $mail_name (Ubuntu)
biff = no
append_dot_mydomain = no
#delay_warning_time = 4h
readme_directory = no
smtpd_tls_cert_file=/etc/ssl/certs/ssl-cert-snakeoil.pem
smtpd_tls_key_file=/etc/ssl/private/ssl-cert-snakeoil.key
smtpd_use_tls=yes
smtpd_tls_session_cache_database = btree:${data_directory}/smtpd_scache
smtp_tls_session_cache_database = btree:${data_directory}/smtp_scache
smtpd_relay_restrictions = permit_mynetworks permit_sasl_authenticated defer_unauth_destination
myhostname = .........
alias_maps = hash:/etc/aliases
alias_database = hash:/etc/aliases
myorigin = /etc/mailname
mydestination = /etc/postfix/local-host-names
relayhost =
#mynetworks = 127.0.0.0/8 [::ffff:127.0.0.0]/104 [::1]/128
mynetworks = 0.0.0.0/0
mailbox_size_limit = 0
recipient_delimiter = +
inet_interfaces = all
inet_protocols = all
smtpd_sasl_auth_enable = yes
smtp_sasl_auth_enable = yes

home_mailbox = Maildir/
mailbox_command =
virtual_maps = hash:/etc/postfix/virtusertable