As a few people pointed to this bug report, just a few comments.

The following error message in the logs in regard to the VPN server not
allowing the EAP authentication method to authenticate:

   pppd[5258]: peer doesn't want to authenticate us with eap


Disabling EAP in the VPN connections PPP options should fix that issue.

In regard to MPPE support, network-manager-l2tp's MPPE support has been
broken for over 10 years when Compression Control Protocol (CCP) was
disabled with the following commit in its source code:

https://github.com/nm-l2tp/NetworkManager-l2tp/commit/5fe98f70344e842faa28014be7ba259c2db7ae8b

MPPE generally only works with L2TP servers that don't use IPsec.

MPPE negotiations need to happen within CCP and was fixed with the
version of network-manager-l2tp that shipped with Ubuntu 24.04.

When MPPE is successfully negotiated, the following now appears in the logs (or 
similar for MPPE 40 or 64-bit) :
   MPPE 128-bit stateless compression enabled

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https://bugs.launchpad.net/bugs/2078529

Title:
  L2TP/IPSec VPN stopped working after upgrade to Ubuntu 24.04

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