MQTT not picking up device

I’ve just recently purchased a conbee ii for my HomeAssistant (Running HA OS in a VM) I’m having an issue getting my first device discovered by the Mosquitto broker to be picked up in the integration.

The device is successfully publishing a payload from my home server

....
....
Mar 22 22:18:56 debian npm[9314]: Zigbee2MQTT:info  2022-03-22 22:18:56: MQTT publish: topic 'zigbee2mqtt/stikkontakt-3-lampe', payload '{"device_temperature":null,"energy":0,"linkquality":255,"power":null,"state":null,"update":{"state":"idle"},"update_available":false}'
Mar 22 22:19:02 debian npm[9314]: Zigbee2MQTT:info  2022-03-22 22:19:02: MQTT publish: topic 'zigbee2mqtt/stikkontakt-3-lampe', payload '{"device_temperature":null,"energy":0,"linkquality":255,"power":null,"state":null,"update":{"state":"idle"},"update_available":false}'

Mosquitto broker logs:

[s6-init] making user provided files available at /var/run/s6/etc...exited 0.
[s6-init] ensuring user provided files have correct perms...exited 0.
[fix-attrs.d] applying ownership & permissions fixes...
[fix-attrs.d] done.
[cont-init.d] executing container initialization scripts...
[cont-init.d] mosquitto.sh: executing... 
[22:14:24] INFO: Certificates found: SSL is available
[cont-init.d] mosquitto.sh: exited 0.
[cont-init.d] nginx.sh: executing... 
[cont-init.d] nginx.sh: exited 0.
[cont-init.d] done.
[services.d] starting services
[services.d] done.
[22:14:25] INFO: Starting NGINX for authentication handling...
[22:14:25] INFO: Starting mosquitto MQTT broker...
1647983665: mosquitto version 1.6.12 starting
1647983665: |-- *** auth-plug: startup
[22:14:25] INFO: Successfully send discovery information to Home Assistant.
[22:14:25] INFO: Successfully send service information to the Supervisor.
1647983665: Config loaded from /etc/mosquitto/mosquitto.conf.
1647983665: Loading plugin: /usr/share/mosquitto/auth-plug.so
1647983665:  ├── Username/password checking enabled.
1647983665:  ├── TLS-PSK checking enabled.
1647983665:  └── Extended authentication not enabled.
1647983665: Opening ipv4 listen socket on port 1883.
1647983665: Opening ipv6 listen socket on port 1883.
1647983665: Opening websockets listen socket on port 1884.
1647983665: Opening ipv4 listen socket on port 8883.
1647983665: Opening ipv6 listen socket on port 8883.
1647983665: Opening websockets listen socket on port 8884.
1647983665: Warning: Mosquitto should not be run as root/administrator.
1647983665: mosquitto version 1.6.12 running
1647983665: New connection from 127.0.0.1 on port 1883.
1647983665: Socket error on client <unknown>, disconnecting.
1647983665: New connection from 192.168.68.120 on port 1883.
1647983665: New client connected from 192.168.68.120 as mqttjs_4659c168 (p2, c1, k60).

Options (kept as default)

certfile: fullchain.pem
customize:
  active: true
  folder: mosquitto
keyfile: privkey.pem
logins:
  - username: mqtt
    password: ####
require_certificate: false

The device is not showing up in the entity list . What am I missing?
Any input is much appreciated.

Is discovery on in ha and in z2m?

I thought mqtt discovery was enabled by default in ha? In z2m I have set homeassistant: true in configuration.yaml

homeassistant: true
permit_join: true
mqtt:
  base_topic: zigbee2mqtt
  server: mqtt://192.168.68.112:1883
  user: mqtt
  password: ####
serial:
  port: /dev/ttyACM0
advanced:
  network_key:
    - 193
    - 105
    - 26
    - 250
    - 117
    - 246
    - 126
    - 197
    - 39
    - 249
    - 141
    - 86
    - 163
    - 20
    - 227
    - 101
frontend:
  port: 8080
  host: 192.168.68.120
availability:
  active:
    timeout: 10
  passive:
    timeout: 1500
devices:
  '0x54ef4410002c86ef':
    friendly_name: stikkontakt-3-lampe
  '0x00158d00077daa46':
    friendly_name: lekasjesensor-1

I finally got it working!
I followed the Mosquitto broker add-on documentation and created a user and added a ACL. I then reconfigured the MQTT integration with the username/password of my new user and the entities appeared!

What did you read that gave you that impression?