China, Dschinn, Schanz, Schein, Scheine, Scheins, Schi, Schiene, Schier, Schieß, Schiff, Schiit, Schild, Schilf, Schily, Schira, Schirm, Schis, Schiss, Schiwa, Schon, Schund, Schwing, Schön, Sphinx, china, schanz, schein, scheine, scheins, scheint, schenk, schi, schick, schied, schief, schien, schiene, schient, schier, schieß, schiff, schiit, schild, schilf, schilt, schinde, schirm, schis, schiss, schon, schone, schont, schund, schwing, schön, schöne, schönt, sphinx
This happens in LanguageTool 2.4 with morfologik-speller 1.8.2, not using frequency information yet. Also, the dictionary has not been re-encoded yet with 1.8.2, as you suggested.