SERVFAIL is causing issues with some of our applications on linux/macs. I presume this is Windows DNS causing some problems with our linux/mac clients? Then again Windows clients are able to do shortname lookup without any issue.
From a Mac/Centos 7.3 host
[root@user-vm ~]# cat /etc/resolv.conf
domain example.org
search example.org c.example.org
nameserver 10.1.1.71
nameserver 10.1.1.70
nameserver 10.3.20.71
nameserver 10.3.20.70
[root@user-vm ~]# nslookup 123
;; Got SERVFAIL reply from 10.1.1.71, trying next server
;; Got SERVFAIL reply from 10.1.1.70, trying next server
Server: 10.3.20.71
Address: 10.3.20.71#53
** server can't find 123: SERVFAIL
[root@user-vm ~]# nslookup 123.example.org.
Server: 10.1.1.71
Address: 10.1.1.71#53
** server can't find 123.example.org.: NXDOMAIN
From a Windows client
C:\Users\user>nslookup 123
Server: pdc01.example.org
Address: 10.1.1.70
*** pdc01.example.org can't find 123: Non-existent domain