Creating the first subserver admin.mydomain.com worked just fine. Webmin/Virtualmin are now running smoothly in that domain after changing apache config and webmin config.
More subdomains cannot be created via the GUI - stuck after displaying “Creating Home directory” - while they can be created via CLI easily.
Did I misconfigure anything?
Yes, you have misconfigured something or caused it to be misconfigured.
The admin subdomain is reserved in Virtualmin. You should not / can not create a subserver for admin.domain.tld when a top level server for domain.tld exists in your Virtualmin system.