Thanks for the assistance!!
I had not noticed that the $myhostname was an issue. I also was not aware that one could not have a system account. Even so I do not get a creation of a Maildir automatically. Instead it created a vmail folder in my /home/vmail not what I expected.
maillog attempt new account
Jul 16 13:40:37 demo authdaemond: received userid lookup request: email@example.com
Jul 16 13:40:37 demo authdaemond: authmysql: trying this module
Jul 16 13:40:37 demo authdaemond: authmysqllib: connected. Versions: header 50045, client 50045, server 50045
Jul 16 13:40:37 demo authdaemond: SQL query: SELECT username, password, "", 5000, 5000, "/home/vmail", CONCAT("/home/vmail/",maildir) , concat(quota,'S'), name, "" FROM mailbox WHERE username = 'firstname.lastname@example.org'
Jul 16 13:40:37 demo authdaemond: Authenticated: sysusername=<null>, sysuserid=5000, sysgroupid=5000, homedir=/home/vmail, email@example.com, fullname=MarkMac, firstname.lastname@example.org/, quota=0S, options=<null>
Jul 16 13:40:37 demo authdaemond: Authenticated: clearpasswd=<null>, passwd=$1$954a669d$zcDxyF.55ZLtPu9rJHLU1/
Jul 16 13:40:37 demo maildrop: Unable to open mailbox.
Jul 16 13:40:37 demo postfix/pipe: 436AEA0259: to=<email@example.com>, relay=maildrop, delay=3370, delays=3367/1.3/0/1.3, dsn=4.3.0, status=deferred (temporary failure. Command output: /usr/bin/maildrop: Unable to open mailbox. )