Here is one thing that you can try (although I'm not overly optimistic):
EXEC sp_serveroption SNOWFLAKE_PROD, 'use remote collation', true
EXEC sp_serveroption SNOWFLAKE_PROD, 'Latin1_General_100_CI_AS_SC_UTF8'
As I mentioned, I don't have access to Snowflake, but I did some experiments with MySQL which also requires MSDASQL + ODBC. When I tried some Greek characters, they came through just fine.
To note, though, is that there are two versions of the MySQL Driver: There is the ANSI driver and the Unicode driver. My Greek characters worked with the Unicode driver. With the ANSI driver I got all question marks. And that is not at all surprising: that's the normal fallback character when no other good fallback is available. But you got 0x1A, which is a non-standard choice for a fallback.
I don't know if there is a similar issue with the Snowflake ODBC driver.
I'm also a little curious what happens if you try the work räksmörgås. This word has three Swedish characters that are in the code page of your collation. Are they also distorted?