Interesting question posed by OP.Have you looked at this thread:
Ubuntu 22.04 LTS Desktop - DHCP DNS servers ignored
Relatively new to linux and just needed to run through something: I've noticed that with Ubuntu 22.04 there is no way to disable the dns stub listener at install time nor run time on the live cd wi...askubuntu.com
I started searching on whether Ubuntu intentionally blocks local name resolution, and it turns out that recent versions of dnsmasq do it on purpose, to supposedly thwart some bizarre attack type, so I uninstalled dnsmasq and did a cleanup, rebooted but the problem persists (additional paranoia somewhere in the convoluted network setup). I'm going to try to revert back to the old ifupdown style of networking (which is what was in place when I started with linux) and see if that fixes it. If it doesn't I'll turn the DHCP server back on, disable router DHCP and the get the info I'm looking for from the DHCP log file that I use. Maybe reverting back to 16.04 might be worth trying, IDK.