New DNS domains with German umlaut broken

On our server running v1.9.3, when we create domains that contain an ä, dns does not work for them.
The DNS query returns with a SERVFAIL.
Here are example logs from /var/log/daemon.log for a query:

Apr  2 14:37:41 main named[893]: zone xn--XXX-backhusle-qzb.de/IN: loading from master file /home/ZZZ/conf/dns/XXX-backhäusle.de.db failed: bad name (check-names)
Apr  2 14:37:41 main named[893]: zone xn--XXX-backhusle-qzb.de/IN: not loaded due to errors.

All old DNS Domains with umlauts work (created ~2023-2024), but for testing I deleted and recreated a DNS Domain that has an ä and now it also does not work.
Still trying to find out what changed, but that might need insight into the code / database structure.

Anyone? Maybe @eris you can give a hint?
This is limiting us quite a bit right now.