Hello Lasse Grønholt,
Thank you for posting your query on Microsoft Q&A.
Azure AD App Registration will not allow double hyphen in FQDNs for additional security.
In the reply url which you have shared, when you remove one hyphen "-" between xn and din, it will be a valid url.
Reference :
https://learn.microsoft.com/en-us/entra/identity-platform/reply-url
I hope this information is helpful. Please feel free to reach out if you have any further questions.
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Thanks,
Venkata Jagadeep