Firebase login with email link fails with code 400 OPERATION_NOT_ALLOWED

I configured email with passwordless login in my Firebase project

And followed the documentation at https://firebase.google.com/docs/auth/web/email-link-auth

My code:

const actionCodeSettings = {
  url: "https://acme.com",
  handleCodeInApp: true,
  dynamicLinkDomain: "acme.com",
};
const response = await firebase.auth().sendSignInLinkToEmail(email, actionCodeSettings);

Which translates to the following request:

curl 'https://identitytoolkit.googleapis.com/v1/accounts:sendOobCode?key=XXX' \
...
  --data-raw '{"requestType":"EMAIL_SIGNIN","email":"mugen@acme.co","continueUrl":"https://acme.co","canHandleCodeInApp":true,dynamicLinkDomain:"acme.com"}'

And I get the following response:

{
  "error": {
    "code": 400,
    "message": "OPERATION_NOT_ALLOWED",
    "errors": [
      {
        "message": "OPERATION_NOT_ALLOWED",
        "domain": "global",
        "reason": "invalid"
      }
    ]
  }
}

The domain is in the authorized list. I tried with and without sending the dynamicLinkDomain parameter.