Windows client: proxy service crashes when exclude domain is specified

I have installed the Windows client version 3.0.12 in an Active Directory domain member computer. To ensure that the local domain (which is not resolvable by Internet DNS servers) can be resolved on the client, I specified the local domain as an excluded domain using the EXCLUDE_DOMAINS argument when installing (according to the Windows Client Mass Deployment Guide).

Whenever I attempt to perform a DNS query for a resource in the excluded domain, the NextDNS DNS53 to DoH proxy. service crashes and restarts rapidly and repeatedly and subsequent DNS queries fail, to either internal or external (Internet) domains.

This makes the Windows client basically unusable in a Windows Active Directory domain. Without the client, we can still use NextDNS servers as forwarders in our Active Directory DNS server, but we lose the benefit of per-machine logging.