Pico 1.3 + ESP8266 ESP01 0.25.0.0 problem

I have trouble getting wifi to work when I flash the 0.25.0.0 firmware to the ESP8266. I am using the test code:

digitalWrite(B9,1);
Serial2.setup(115200, { rx: A3, tx: A2 });
var wifi = require("ESP8266WiFi_0v25").connect(Serial2, function(err){
  if (err) throw err;
  console.log("Connecting to WiFi");
  wifi.connect("SSID", "PASS", function(err){
    if (err) throw err;
    console.log("Connected");
    require("http").get("http://www.pur3.co.uk/hello.txt", function(res){
      console.log("Response: ", res);
      res.on('data', function(d){ console.log("--->"+d); });
    });
  });
});
wifi.at.debug();

I get the following output:

Connecting to WiFi
["AT+CWMODE=1\r\n"
] "\r\nOK\r\n" <--- "\r\nOK\r\n"
["AT+CWJAP=\"SSID\",\"PASS\"\r\n"
] "W" <--- "W"
] "WIFI CONNECTED\r\nWIFI GOT IP\r\n" <--- "IFI CONNECTED\r\nWIFI GOT IP\r\n"
] "\r" <--- "\r"
] "\nOK\r\n" <--- "\nOK\r\n"
Connected
["AT+CIPSTART=0,\"TCP\",\"http://www.pur3.co.uk\",80\r\n"
] "DNS Fail\r\n\r" <--- "DNS Fail\r\n\r"
] "\nERROR\r\n" <--- "\nERROR\r\n"
>wifi.getIP(function(a) { });
["AT+CIFSR\r\n"
=undefined
] "+CIFSR:STAIP" <--- "+CIFSR:STAIP"
] "+CIFSR:STAIP,\"84.104.101.32\"\r\n+CIFSR:STAMAC,\"1" <--- ",\"84.104.101.32\"\r\n+CIFSR:STAMAC,\"1"
] "+CIFSR:STAMAC,\"18:fe:34:9b:48:c6\"\r\n\r\nOK\r\n" <--- "8:fe:34:9b:48:c6\"\r\n\r\nOK\r\n"

As you can see I get a strange DNS Fail message. After that I manually typed in wifi.getIP(...) and it seems like I never get a dynamic IP from the router.

However, if I flash the old 0018000902-AI03 firmware, everything works fine. Also wifi.getIP(...) shows the IP assigned from the router.

I am using the Shim Version 1 soldered to the Pico board.