Adguard add-on only resolves homeassistant.local subdomain

Hi all!

I recently installed the Adguard addon on my hassOS server. One of the features I would like to use is the DNS rewrite.

The DNS is set to the home assistant machine in the router, and all the normal DNS requests are processed in Adguard perfectly fine. the problem lies in the DNS rewrites. When adding a rewrite that is not *.homeassistant.local, it just does not work. All the *.homeassistant.local requests are rewritten correctly in Adguard, however any rewrite that is not *.homeassistant.local does not work and returns “DNS_PROBE_FINISHED_NXDOMAIN”.

Again, everything else works correctly in Adguard.

Does anyone have an idea how to fix this?
Thanks!