The domain is always punycoded, it is up to the browsers to display it or not
It all changed when this got the attention of the big companies, even if other has warned against it for years
https://www.xudongz.com/blog/2017/idn-phishing/
Just a week after this article, Chrome chosed to display the punycode instead of the utf-8 encoded characters. Up until that point, every browser did