ntlm_auth not respected

[Chris Parker]

It seems that I have ntlm_auth configured to talk to Samba correctly. As it positively works when run from the CLI and FR even shows a positive login, but that positive login never seems to be sent to the authentication stage.
More food for thought once I tackle this, is that when I try to link all this together with a Netgear WAP, plain-text users in the users file works perfectly fine.

Log output:
rad_recv: Access-Request packet from host 127.0.0.1 port 35826, id=114, length=57
	User-Name = "wyse1"
	User-Password = "K503D"
	NAS-IP-Address = 127.0.1.1
	NAS-Port = 1812
# Executing section authorize from file /etc/freeradius/sites-enabled/default
+- entering group authorize {...}
++[preprocess] returns ok
++[chap] returns noop
++[mschap] returns noop
++[digest] returns noop
[suffix] No '@' in User-Name = "wyse1", looking up realm NULL
[suffix] No such realm "NULL"
++[suffix] returns noop
[eap] No EAP-Message, not doing EAP
++[eap] returns noop
++[files] returns noop
++[expiration] returns noop
++[logintime] returns noop
[ntlm_auth] 	expand: --username=%{mschap:User-Name} -> --username=wyse1
[ntlm_auth] 	expand: --password=%{User-Password} -> --password=K503D
Exec-Program output: NT_STATUS_OK: Success (0x0) 
Exec-Program-Wait: plaintext: NT_STATUS_OK: Success (0x0) 
Exec-Program: returned: 0
++[ntlm_auth] returns ok
[pap] WARNING! No "known good" password found for the user.  Authentication may fail because of this.
++[pap] returns noop
ERROR: No authenticate method (Auth-Type) found for the request: Rejecting the user
Failed to authenticate the user.
Login incorrect: [wyse1/K503D] (from client localhost port 1812)
Using Post-Auth-Type Reject
# Executing group from file /etc/freeradius/sites-enabled/default
+- entering group REJECT {...}
[attr_filter.access_reject] 	expand: %{User-Name} -> wyse1
 attr_filter: Matched entry DEFAULT at line 11
++[attr_filter.access_reject] returns updated
Delaying reject of request 7 for 1 seconds
Going to the next request
Waking up in 0.9 seconds.
Sending delayed reject for request 7
Sending Access-Reject of id 114 to 127.0.0.1 port 35826
Waking up in 4.9 seconds.
Cleaning up request 7 ID 114 with timestamp +843
Ready to process requests.