I think an issue here is Google is showing "ɢoogle" as "ɢoogle.com" and not "xn--oogle-wmc.com". The .com TLD has no support for IDNA2008 so they allow registra

I think an issue here is Google is showing "ɢoogle" as "ɢoogle.com" and not "xn--oogle-wmc.com". The .com TLD has no support for IDNA2008 so they allow registration of these similar-looking unicode TLDs. This is why if you paste ɢoogle.com in your browser it will show the punycode instead. Basically it looks like Google is decoding punycode for all TLDs, not just those that support IDNA2008.