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PiHole local DNS Config understanding issues


been running PiHole with my FritzBox as DHCP Server for a while now. Just got Fibre and the new router doesn't support "only" setting an upstream DNS (neither does it support setting a domain suffix/local domain). I've switched the DHCP off and now PiHole does DHCP as well.

The FritzBox and the new Router added the domain suffix to recognized hostnames automatically, so even if i set up a fixed IP-Address on some device or machine, i could always use the hostname.local.domain without having to set a reservation.

Can PiHole/AdGuard/Technitium even do this? Do they need some extra configuration? PiHole does recognize the Hostnames correctly for some devices, but most are missing: For example, my Proxmox host was reachable with "pve.domain.local", it isn't with PiHole, even though PiHole identified the hostname. My Homeassistant isn't recognized at all, even though the IP-Address is showing up in PiHole. The Domain under "Advanced DHCP Settings" is set up.

Am i misunderstanding something or did i configure something wrong?