I use SASL for several of my regular connections. I just tried connecting to the ERGO testnet.ergo.chat test server and it worked fine for me. I don't have an account there, so the authentication failed, but it initiated and handled the SASL process correctly as far as I can tell.
-> testnet.ergo.chat CAP LS 302
-> testnet.ergo.chat NICK nickname
-> testnet.ergo.chat USER user 0 * :...
<- :testnet.ergo.chat CAP * LS * :account-notify account-tag away-notify batch cap-notify chghost draft/account-registration=before-connect draft/channel-rename draft/chathistory draft/event-playback draft/extended-isupport draft/languages=17,en,~bs,~de,~el,~en-AU,~es,~fi,~fr-FR,~it,~nl,~no,~pl,~pt-BR,~ro,~sq-AL,~tr-TR,~zh-CN draft/message-redaction draft/metadata-2=before-connect,max-subs=100,max-keys=100 draft/multiline=max-bytes=4096,max-lines=24 draft/no-implicit-names draft/persistence draft/pre-away
-> testnet.ergo.chat CAP REQ :account-notify account-tag away-notify batch chghost
<- :testnet.ergo.chat CAP * LS :draft/read-marker draft/relaymsg=/ draft/webpush echo-message ergo.chat/nope extended-join extended-monitor invite-notify labeled-response message-tags multi-prefix sasl=PLAIN,EXTERNAL server-time setname soju.im/webpush standard-replies sts=duration=86400,port=6697 userhost-in-names znc.in/playback znc.in/self-message
-> testnet.ergo.chat CAP REQ :extended-join extended-monitor invite-notify labeled-response message-tags multi-prefix sasl server-time setname standard-replies userhost-in-names
<- :testnet.ergo.chat CAP * ACK :account-notify account-tag away-notify batch chghost
<- @time=2026-06-28T07:48:06.528Z :testnet.ergo.chat CAP * ACK :extended-join extended-monitor invite-notify labeled-response message-tags multi-prefix sasl server-time setname standard-replies userhost-in-names
-> testnet.ergo.chat AUTHENTICATE PLAIN
<- AUTHENTICATE +
-> testnet.ergo.chat AUTHENTICATE mimenecodedtext
<- @time=2026-06-28T07:48:06.733Z :testnet.ergo.chat 904 * :SASL authentication failed: Account does not exist
-> testnet.ergo.chat AUTHENTICATE *
-> testnet.ergo.chat CAP LIST
-> testnet.ergo.chat CAP END
<- @time=2026-06-28T07:48:06.839Z :testnet.ergo.chat 906 * :SASL authentication aborted
Can you provide the raw /debug output up to before the MOTD is sent so we can see the sequence you are seeing?