Not able to authenticate SMTP clients on Debian+Postfix+SASL with rimap

Question

I'm having a strange problem. I followed few guides from the net. My goal is to create a SMTP postfix that will use Cyrus SASL to authenticate users upon sending email with different imap server.

Making all more simple: have to transfer/replace current smtp server with new one as current is on public cloud and gets on black lists pretty often.

What I managed so far is: Working Postfix Authentication working when using :

testsaslauthd -u user@domain.com -p password

I'm getting Ok "Success" so I assume sasl itself work.

When I invoke saslfinger -s I'm getting:

There is no smtpd.conf that defines what SASL should do for Postfix. SMTP AUTH can't work!

but it seems that all is fine within the configuration files:

/etc/postfix/sasls/smtp.conf:

pwcheck_method: saslauthd
mech_list:  PLAIN LOGIN

/etc/postfix/main.cf:

smtpd_recipient_restrictions = reject_invalid_hostname,
permit permit_mynetworks,
permit_sasl_authenticated
disable_vrfy_command = yes
smtpd_sasl_local_domain = $myhostname
smtpd_sasl_auth_enable = yes
smtpd_sasl_security_options = noanonymous

/etc/default/saslauthd-postfix:

START=yes
MECHANISMS="rimap"
MECH_OPTIONS="domain.com -r"
OPTIONS="-c -m /var/spool/postfix/var/run/saslauthd"

I'm running postfix chroot'ed so had to create a symlink but like I said. It all seems to work independently, just need to be linked somehow. When I try to setup account in outlook, I got wrong name or password. The log on Debian says:

May 11 23:35:43 smtp-test postfix/smtpd[741]: warning: unknown[192.168.108.1]: SASL NTLM authentication failed: authentication failure
May 11 23:35:43 smtp-test postfix/smtpd[741]: warning: SASL authentication failure: unable to canonify user and get auxprops
May 11 23:35:43 smtp-test postfix/smtpd[741]: warning: unknown[192.168.108.1]: SASL DIGEST-MD5 authentication failed: authentication failure
May 11 23:35:43 smtp-test postfix/smtpd[741]: warning: unknown[192.168.108.1]: SASL LOGIN authentication failed: authentication failure
May 11 23:35:43 smtp-test postfix/smtpd[741]: lost connection after AUTH from unknown[192.168.108.1]
May 11 23:35:43 smtp-test postfix/smtpd[741]: disconnect from unknown[192.168.108.1]

Strange thing is it tries NTLM(not mentioned anywhere) instead of RIMAP. And cannot make canonical name of user even after adding -r switch that should combine name and realm/domain name. I guess that is related to first warning from saslfinger but cannot find the cause. All updated to newest available versions. Any help?