L2TP VPN to Draytek 2860


I was hoping to setup a dial out L2TP VPN from a RUT360 to a Draytek Vigor 2860. My phone and laptop happily connect the Draytek this way.

The only way I can get it to connect to the Draytek is to set the L2TP to “IPSec Policy NONE” rather than “IPSec Policy MUST”. Obviously this is not desirable and I cannot use it this way.

The error message in the Draytek is “Chap Login Failed”.

Has anyone managed to get this combo working?