Swedish characters Ä and Ö not working properly

I just discovered that my adding of the Swedish characters åäö isn't working as it should. When pressing åäö on my physical keyboard, it works fine, and the on-screen keyboard shows the characters just fine in it's layout, but for some reason pressing ä and ö on the on-screen keyboard gives me the long versions ("auml" and "ouml") instead of the characters. I thought it was enough to add them like I did, but obviously, it isn't. å/Å works just fine, but äÄöÖ is problematic.

Squeekboard 1.2.3~1325.gbpe47ec1 in qemu.