That should work:

auth.settings.registration_requires_verification = True
auth.settings.registration_requires_approval = False
auth.settings.reset_password_requires_verification = True

However, you probably want to add this if you don't want them to login at 
all until verified

auth.settings.login_after_registration= False

As for why the mail sending is not working and no error messages, I would 
have to see the mail configuration you're using, you could be using 
mail.settings.server = 'logging' as far as I know.

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