Mac resolves specific domains to 127.x.x.x IPs without sending the DNS queries

I noticed my mac can't resolve some domains (domains are publicly resolvable, but you need to be in org's VPN to reach the IPs). More accurately, it incorrectly resolves them to an IP in the 127.0.0.0/8 range; a different IP each time. The domains should resolve to a specific IP in the 10.0.0.0/8 range, this works for everyone except me on this specific device (mac m1 pro running 13.6.2 with an Apple Silicon CPU).

I tried many different DNS servers (1.1.1.1, 8.8.8.8, among others) using dig:

dig my.domain @1.1.1.1

and none of them worked. I checked with Wireshark and I see no outbound DNS queries (which I do for other domains). It is worth noting that the dig output shows a warning:

# dig my.domain @1.1.1.1
;; Warning: Message parser reports malformed message packet.

; <<>> DiG 9.10.6 <<>> my.domain @1.1.1.1
;; global options: +cmd
;; Got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 9394
;; flags: qr rd ra ad; QUERY: 1, ANSWER: 1, AUTHORITY: 0, ADDITIONAL: 1

;; QUESTION SECTION:
;my.domain.	IN	A

;; ANSWER SECTION:
my.domain. 15	IN	A	127.250.53.69

;; Query time: 3 msec
;; SERVER: 1.1.1.1#53(1.1.1.1)
;; WHEN: Mon Jan 15 14:12:55 -03 2024
;; MSG SIZE  rcvd: 57

The TTL mentioned in the response is also not respected, when I run successive requests they resolve to different IPs.

I tried flushing my local DNS cache but nothing changes. I confirmed that I successfully flushed the cache by seeing outbound queries for domains that were cached (for which I couldn't see any outbound queries before flushing). I ran these commands as root to flush it:

dscacheutil -flushcache; sudo killall -HUP mDNSResponder

I also tried disabling mDNS but all processes that use my device's resolver (browsers, dns-sd, etc.) stopped resolving any domains. With mDNS disabled, the same troublesome domains kept resolving to 127.x.x.x addresses.