Thank you. I manage to set that as my handle. It didn't validate earlier today with TXT entry. So, I thought it didn't work. Side note, I did setup PDS as well on my VPS by following the steps but not explore moving to another server.

did you actually start your PDS or validate you own your domain to get your handle here (@mackabu.eu) at bsky? I can't seems to get the top level even though I followed the steps to host a PDS

Enter a handle (e.g. alice.mydomain.io): mydomain.io
ERROR: Not a supported handle domain

I can't seems to set my handle with my TLD but instead it only allows @username.example.com as my handle. How did you manage to set that?