Authentication Services check the pam files and looks for a create_homedir setting. If this setting is in the pam configuration files, Authentication Services will run the /opt/quest/libexec/vas/homedir-create.sh script after the user logs in the system.
In this instance a configuration setting was set not to run the creation script:
1 - Edit /etc/opt/quest/vas/vas.conf either manually or if using VGP modify the group policy
2 - Remove the following line:
homedir-creation-script = /dev/null
For permissions issue, use ls -l /home to check the permissions
On version 188.8.131.52 and up there was a change in attributes asked for which caused only script files to fail.
Please see the following article: KB127466