FreeRadius debug log of failed connection:

Ready to process requests.
rad_recv: Access-Request packet from host 172.26.69.8 port 1479, id=77, length=146
       User-Name = "test26"
       NAS-Port = 8057
       Service-Type = Framed-User
       Framed-Protocol = PPP
       Tunnel-Client-Endpoint:0 = "76.64.100.68"
       MS-CHAP-Response = 0x02010000000000000000000000000000000000000000000000002f97e1c84fea6fedbd12aa551c2d84282f6d2089f5e9d345
       MS-CHAP-Challenge = 0x5e0b3b68c24784e0
       NAS-IP-Address = 172.26.69.8
       NAS-Port-Type = Virtual

----------------snip

Found Auth-Type = MSCHAP
+- entering group MS-CHAP {...}
[mschap] No Cleartext-Password configured.  Cannot create LM-Password.
[mschap] No Cleartext-Password configured.  Cannot create NT-Password.
[mschap] Told to do MS-CHAPv1 with NT-Password
[mschap]        expand: --username=%{mschap:User-Name:-None} -> --username=test26
[mschap] No NT-Domain was found in the User-Name.
[mschap]        expand: --domain=%{mschap:NT-Domain:-ap1} -> --domain=ap1
[mschap]  mschap1: 5e
[mschap]        expand: --challenge=%{mschap:Challenge:-00} -> --challenge=5e0b3b68c24784e0
[mschap]        expand: --nt-response=%{mschap:NT-Response:-00} -> --nt-response=2f97e1c84fea6fedbd12aa551c2d84282f6d2089f5e9d345