DNS problem: NXDOMAIN but dig _acme-challenge.sbsiot.xyz works

My domain is: sbsiot.xyz

I ran this command:
sudo ./certbot-auto certonly --manual --preferred-challenges=dns --email mckenna.tim@gmail.com --server https://acme-v02.api.letsencrypt.org/directory --agree-tos -d *.sbsiot.xyz

It produced this output:
IMPORTANT NOTES:
- The following errors were reported by the server:

   Domain: sbsiot.xyz
   Type:   dns
   Detail: DNS problem: NXDOMAIN looking up TXT for
   _acme-challenge.sbsiot.xyz

My web server is (include version):
nginx 1.10.3

The operating system my web server runs on is (include version):
ubuntu 16.04

My hosting provider, if applicable, is:
n3servers

I can login to a root shell on my machine
I’m not using a control panel

Certbot 0.38.0

once the CNAME record updates dig gives me the correct challenge text

dig -q=txt _acme-challenge.sbsiot.xyz txt +short
92.242.140.21
wymew9dvd5emwf5721vbsj2b3zwxfygstz-p3o_eaow. 

(nslookup fails though

nslookup -q=txt _acme-challenge.sbsiot.xyz.
Server:         192.168.1.1
Address:        192.168.1.1#53

`** server can't find _acme-challenge.sbsiot.xyz: NXDOMAIN)`

Hi @mckennatim,

This is a kind of obscure one in terms of the way that different software will handle it, but you’ve created a CNAME record instead of a TXT record on your DNS server. You should find where you did that and replace it with a TXT record instead.

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