Seems like Phoenix is checking LNURLPay first and then BIP-353? https://image.nostr.build/04bba2cabcd363e01c4d805aea0b799f5443f0ebc86bbf6e1e8676734eb2a25d.jpg
They said it should handle both
Maybe you need DNSSEC enabled on your domain?
I think I just enabled it
Worked!