Reverse Proxy Breaks With DNS Payload Delivery Turned On

I connect to Docker apps on my NAS using a combination of Tailscale and Nginx Proxy Manager for reverse proxy using a custom domain. I've noticed that turning on the new DNS Payload Delivery setting in the Security tab of the NextDNS console breaks the reverse proxy and I can no longer connect to those apps using the custom domain. I can still connect to them directly using both the local IP address and Tailscale IP address though.