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Once UDFs' inputs and outputs are defined (which will likely be similar to how macros' types can now be defined), it'll be possible for the dbt Fusion engine to check the validity of UDFs. Right now, it thinks that you're using a function that doesn't exist and raises an error.
In the meantime, you can disable static analysis of models that use the UDF: https://docs.getdbt.com/docs/fusion/new-concepts#the-static_analysis-config
Update, 2025-07-18: Snowflake users can fetch existing UDFs automatically by setting the env var DBT_ENGINE_EXPERIMENTAL_LIST_UDFS=1
Update, 2025-07-23 Check out this discussion to get into the details of UDF definition as a part of the dbt language: dbt-labs/dbt-core#11851
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