I know this has been brought up during the snapshot phase of 1.17 (MC-225360). However, this now seems to be an issue (again?) even though it was marked as resolved.
Today we decided to start supporting 1.17 clients on our network and started receiving many reports of people not being able to connect anymore. The IP hadn't changed, people in 1.16 using java 11 (like me) can still connect. However, if using java 16 (required for minecraft 1.17, therefore all 1.17 players), the SRV records don't seem to be resolving correctly.
I can especially verify that this is the issue since the Mojang team added extra info: which numerical IP it's trying to connect to when it fails, the IP returned is the one specified under the A record of the domain specified as if typing it in the browser, not the one pointed to by the SRV record.
TLDR; (this is probably not exactly what's happening under the hood but it's what seems to be happening from an outside point of view)
Expected behavior: Using minecraft 1.16.x & Java 11
If address in client: myawesomeip.com > SRV to mc.myawesomeip.com port 25565 > resolves A record of mc.myawesomeip.com > connection works
If address in client: mc.myawesomeip.com > resolves A record of mc.myawesomeip.com > works
Errored behavior: Using Java 16 with any minecraft version (tested 1.17 & 1.16.5)
If address in client: myawesomeip.com > resolves A record of myawesomeip.com > fails
If address in client: mc.myawesomeip.com > resolves A record of mc.myawesomeip.com > works
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@violine1101 Yeah this is not a support request. This is a bug report. I know how dns records work and I have used them in the context of minecraft for around 5 years. I am reporting what is not working with the new version of minecraft, which used to work before with the EXACT same configuration.
It is not even clear if you have read the report I wrote before marking it as invalid, since I clearly stated that this is behaving the same way as a previous report made during the snapshot phase.
On one of the servers I work with, we have just REVERTED to minecraft 1.16 given the issues I clearly stated above. I am severely disappointed with the lack of acknowledgement for the issue.

exact same issue here. I am on a mac and this server mc.marc.tv worked fine with the srv record before 1.17