DMF is perfectly fine to be a solvent. Why wouldn't it be? I'm more concerned about that amine there either reacting with the acid chloride or this thing precipitating out when protonated.
BTW its common to run chlorinations in neat thionyl chloride, sometimes with a drop of catalytic DMF.
Workup is either distill off thionyl chloride, or if the product is kinda water stable, dump it into ice then extract with water and organic solvent.