there seems to be problem with authentification: "No auth is possible"
try to add this line in "/etc/ppp/peers/peer-3":
auth
----------
btw, you don't need to add any IP address in config files, pppd will get them automatically.
make sure, that the username in /etc/ppp/{chap,pap}-secrets correctly matches the one you provide in "/etc/ppp/peers/peer-3" file. Any spaces or special characters in the local name, password, or remote name must be properly quoted.
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