HA Supervisor unhealthy

Istalled HACS on a pretty empty HA. (HAOS 11.1, Core ver. 2023.11.3). After restart, Home assistant came back on saying that it is unhealthy and Supervisor Update failed (i did not request its update).

Tried ha supervisor update in SSH, which fails referring to DNS error on ghcr.io. But it seems fine to me.

[core-ssh ~]$ ha supervisor update
Processing... Done.

Error: Update of Supervisor failed: Can't install ghcr.io/home-assistant/amd64-hassio-supervisor:2024.01.1: 500 Server Error for http+docker://localhost/v1.43/images/create?tag=2024.01.1&fromImage=ghcr.io%2Fhome-assistant%2Famd64-hassio-supervisor&platform=linux%2Famd64: Internal Server Error ("Get "https://ghcr.io/v2/": dial tcp: lookup ghcr.io: no such host")
[core-ssh ~]$ nslookup ghcr.io

Non-authoritative answer:
Name:	ghcr.io

[core-ssh ~]$ ping -c3 ghcr.io
PING ghcr.io ( 56 data bytes
64 bytes from seq=0 ttl=47 time=39.806 ms
64 bytes from seq=1 ttl=47 time=39.637 ms
64 bytes from seq=2 ttl=47 time=39.340 ms

--- ghcr.io ping statistics ---
3 packets transmitted, 3 packets received, 0% packet loss
round-trip min/avg/max = 39.340/39.594/39.806 ms

Any ideas?