PPPoE connection does not set IP

I'm trying to establish VDSL connection using an ECI modem over PPPoE.
I'm running OpenBSD 6.8 on APU board from PC Engines.

Relevant inerface configuration:
/etc/hostname.em0
up

/etc/hostname.pppoe0
inet 0.0.0.0 255.255.255.255 NONE
mtu 1492
pppoedev em0
authproto chap
authname 'my login'
authkey 'my password'
peerproto chap
peerflag callin
up
dest 0.0.0.1


When I bring the interface up, I can see that it authenticates
(tcpdump output is long so I put it below). I can observe that
it authenticates and receives an IP address from the network ISP.

However, when I check the interface, it does not set new IP and it is
stuck with "no carrier"::

pppoe0: flags=8810<POINTOPOINT,SIMPLEX,MULTICAST> mtu 1492
index 15 priority 0 llprio 3
dev: em0 state: initial
sid: 0x0 PADI retries: 0 PADR retries: 0
groups: pppoe
status: no carrier
inet 0.0.0.1 --> 0.0.0.0 netmask 0xff000000


How can I further investigate this issue? I'm a bit out of ideas.


Cheers,
KN

Here is the output from tcpdump -i em0, showing the exchange between
my APU board and ECI VDSL modem.

tcpdump: listening on em0, link-type EN10MB
01:19:24.111229 PPPoE-Discovery
code Initiation, version 1, type 1, id 0x0000, length 12
tag Service-Name, length 0
tag Host-Uniq, length 4 #\324\311\274
01:19:24.117698 PPPoE-Discovery
code Initiation, version 1, type 1, id 0x0000, length 12
tag Service-Name, length 0
tag Host-Uniq, length 4 #\324\311\274
01:19:24.122470 PPPoE-Discovery
code Offer, version 1, type 1, id 0x0000, length 47
tag Service-Name, length 0
tag AC-Name, length 11 acc-aln4.fb
tag Host-Uniq, length 4 #\324\311\274
tag AC-Cookie, length 16 8\236\305\331\324?\035s\227\256\274\320\373\012\374h
01:19:24.122653 PPPoE-Discovery
code Request, version 1, type 1, id 0x0000, length 32
tag Service-Name, length 0
tag AC-Cookie, length 16 8\236\305\331\324?\035s\227\256\274\320\373\012\374h
tag Host-Uniq, length 4 #\324\311\274
01:19:24.123960 PPPoE-Discovery
code Initiation, version 1, type 1, id 0x0000, length 12
tag Service-Name, length 0
tag Host-Uniq, length 4 #\324\311\274
01:19:24.130257 PPPoE-Discovery
code Initiation, version 1, type 1, id 0x0000, length 12
tag Service-Name, length 0
tag Host-Uniq, length 4 #\324\311\274
01:19:24.145508 PPPoE-Discovery
code Offer, version 1, type 1, id 0x0000, length 47
tag Service-Name, length 0
tag AC-Name, length 11 acc-aln4.fb
tag Host-Uniq, length 4 #\324\311\274
tag AC-Cookie, length 16 8\236\305\331\324?\035s\227\256\274\320\373\012\374h
01:19:24.145724 PPPoE-Discovery
code Request, version 1, type 1, id 0x0000, length 32
tag Service-Name, length 0
tag AC-Cookie, length 16 8\236\305\331\324?\035s\227\256\274\320\373\012\374h
tag Host-Uniq, length 4 #\324\311\274
01:19:24.149589 PPPoE-Discovery
code Confirm, version 1, type 1, id 0x144e, length 12
tag Service-Name, length 0
tag Host-Uniq, length 4 #\324\311\274
01:19:24.149639 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 16
LCP Configure-Request Id=0x01: Magic-Number=2012867662 Max-Rx-Unit=1492
01:19:24.185026 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 21
LCP Configure-Request Id=0x1f: Max-Rx-Unit=1492 Auth-Prot=CHAP/MD5 Magic-Number=538534638
01:19:24.185062 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 21
LCP Configure-Ack Id=0x1f: Max-Rx-Unit=1492 Auth-Prot=CHAP/MD5 Magic-Number=538534638
01:19:24.185167 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 16
LCP Configure-Ack Id=0x01: Magic-Number=2012867662 Max-Rx-Unit=1492
01:19:24.188465 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 64
CHAP Challenge Id=0x01: Value=706d4498c8643102f0a75b6e8b352fcfa2fa51bd8ccd9177de4ca5a23a29aa2a966e425fd373e1441c3d32a7f161 Name=acc-aln4.fb
01:19:24.188546 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 44
CHAP Response Id=0x01: Value=803993c026af19d16f54c02c499865c0 Name=<***MY LOGIN***>
01:19:24.232859 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 33
CHAP Success Id=0x01: Message=CHAP authentication success
01:19:24.233293 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 6
LCP Terminate-Request Id=0x02:
01:19:24.233726 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 12
IPCP Configure-Request Id=0xfe: IP-Address=<IP ADDRESS FROM ISP>
01:19:24.236687 PPPoE-Session
code Session, version 1, type 1, id 0x144e, length 6
LCP Terminate-Ack Id=0x02:
01:19:24.252350 PPPoE-Discovery
code Terminate, version 1, type 1, id 0x144e, length 0
01:19:24.262382 PPPoE-Discovery
code Terminate, version 1, type 1, id 0x144e, length 0



Best regards,
Chris Narkiewicz

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