The MD2TOOL distributed with Doomsday fails to read certain 3D models in DMD format. So I tried with the old MD2TOOL v1.2.0 from 2004, which thankfully reads the model fine.
Using the old MD2TOOL I converted the DMD models back to the MD2 format. Surprisingly the current MD2TOOL cannot read these MD2 models either.
Find an example DMD model attached.