Does UDT have the ability to monitor, collect, and store syslogs and have the ability to monitor services for errors and report when certain conditions are met?
UDT is the User Device Tracker module for Solarwinds Orion. It's primarily focused on using SNMP to find what endpoints are connected to network devices. It also hooks into Active Directory to associate windows logon events with those endpoints.
The things you are asking for are features of NPM (syslog) and SAM (services/error logs), not UDT.
^^ What he said.
UDT uses traps for detecting new learned MAC addresses on the network, but yes, still NPM or SAM are required for this