Solved it! In Redirect To field for Verification Email just put the actual value for application.callback_domain, instead of {{ application.callback_domain }}: e.g. https://mywebsite.com/login instead of {{ application.callback_domain }}/login.
Verification emails sent from auth0 dashboard or via Management API seem to have a problem when Redirect To is accessing a variable (I tried both application.callback_domain and client.callback_domain - neither worked).
Hope this helps someone!
Cheers
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