Check your WXS and you will see that your [AUTHDEFINITION] is not embedded in it. You cannot set AttributeDefinition to the WIX proiperty as WiX has no idea about "AttributesDefinition".
Most likely you want to bind WiX attributes individually to the formatted properties.
However I am not even sure WiX allows binding these attributes to properties. Most likely it requires them to be hard coded.
I just checked quickly and no you cannot set them dynamically they have to be hard coded to 'yes' or 'no'. This is what you should check if you are trying to adjust WiX attributes directly: http://wixtoolset.org/documentation/manual/v3/xsd/iis/webdirproperties.html.
Most likely you want to bind WiX attributes individually to the formatted properties.
AttributesDefinition = "AnonymousAccess=[AUTHACESS]; WindowsAuthentication=[WINAUTH]"
I just checked quickly and no you cannot set them dynamically they have to be hard coded to 'yes' or 'no'. This is what you should check if you are trying to adjust WiX attributes directly: http://wixtoolset.org/documentation/manual/v3/xsd/iis/webdirproperties.html.