So I just tried this on ArubaOS 8.3.0.2 and I am receiving syslog input on a generic syslog server. If I MDC into the MD these are my settings:
(aruba7005) [MDC] #show logging server
Remote Server: 192.168.1.210
FACILITY MAPPING TABLE
----------------------
local-facility severity remote-facility CEF Format BSD RFC 3164 Compliance source-interface
-------------- -------- --------------- ---------- ----------------------- ----------------
All All local1 Disabled Enabled Disabled
I did nothing besides change the logging level to debug to ensure that it was verbose enough to receive traffic.
I also did "show datapath session table 192.168.1.210" to that server to ensure that the MD is sending traffic over port 514 to the syslog server:
(aruba7005) [MDC] #show datapath session table 192.168.1.210 | include 514
192.168.1.3 192.168.1.210 17 514 514 1/4126 0 0 0 local 10 49 8677 FC 6
192.168.1.210 192.168.1.3 17 514 514 0/0 0 0 1 local 10 0 0 FY 6
Did you try another syslog server? Is there a firewall between the controller and the syslog server?