Is return supposed to return a boolean (0/1) or the non empty value of check1?

I'm asking because you write "will return false even for non-empty strings (due to conversion to integers for string prefixes)".

In general to check for not empty string (check1'="") is used.

If you need to return a boolean depending of empty/not empty, then you can use:

return (check1'="") 

To debug your issue I suggest to enable SOAP logging setting this two global node:

Set ^ISCSOAP("LogFile")="/path/to/yourlog/filename.log"
Set ^ISCSOAP("Log")="ios"

Values for ^ISCSOAP("Log") are:
"i" — Log inbound messages
"o" — Log outbound messages
"s" — Log security information.

Then call your SOAP service and check the log file for hints on the actual issue.

When finished debugging remember to turn it off with Set ^ISCSOAP("Log")="" or Kill ^ISCSOAP("Log")

In error handling code, when using SOAP and a <ZSOAP> error in triggered, the actual error status is contained in %objlasterror variable, so:

Set displayString = ex.DisplayString()
If displayString [ "<ZSOAP>" {
    Set displayString=$system.Status.GetErrorText(%objlasterror)
}

It's all documented, I cannot post documentation links because the documentation site it's not working for me at the moment.

The time Veeam create a snapshot should be measured in seconds, not minutes!

If your server does not use/need any application guest processing (Oracle etc.), then in Veeam you can be disabled in "Application-Aware Processing Options" in the Backup Job configuration for your Suse IRIS server , "Disable application processing":

As @Timo Lindenschmid pointed out, you may consider backing up the secondary server.

In case you want to backup the primary, make sure to set mirror QoS appropriately.

The reason why it happen is explained in the Indirection (@) documentation:

Important:

All variables referenced in the substitution value are public variables, even when used in a procedure.

So, I'd write your method something like:

ClassMethod test() [ PublicList = arg ]
{
    new arg
    s arg = "asd"
    s routine = "say^hello(arg)"
    do @routine
}