Some more information:
We tried downgrading NetworkManager on the client (from 1.42.8 to 1.40.18) and comparing log entries on the server, and it seems that the syntax for DNS settings being pushed differs quite a bit. This is taken from the 2.12.0 server
WIth 1.42.8 client (NOT WORKING)
'<snip>PUSH_REPLY,dns server 10 address 10.10.10.11,dns server 11 address 10.10.10.12,dhcp-option ADAPTER_DOMAIN_SUFFIX example.com,dns server 10 resolve-domains example.com another.net internalstuff.local,dns server 11 resolve-domains example.com another.net internalstuff.local,register-dns,block-ipv6,<snip>,push-continuation 2' (status=1)"
With 1.40.18 client (WORKING)
'<snip>PUSH_REPLY,dhcp-option DNS 10.10.10.11,dhcp-option DNS 10.10.10.12,dhcp-option DOMAIN example.com,dhcp-option DOMAIN another.net,dhcp-option DOMAIN internalstuff.local,ADAPTER_DOMAIN_SUFFIX example.com,register-dns,block-ipv6,<snip>,push-continuation 1' (status=1)"