I pointed a new custom domain to a Google App Engine Standard Environment project and edited the DNS records per Google\'s instructions, and it seems to be redirected proper
In my case I accidentally created a C record for the naked domain (@) in addition to the www. subdomain which should exclusively have it. As there can't be a TXT record on the same level as a C record, the verification failed. Totally my bad but maybe anyone else is also having such issues.