.local appended to hostname in CLI welcome screen

I’ve been troubleshooting some network issues today, which I think I fixed. However, when doing so I noticed that the welcome text displayed when logging in via SSH shows Home Assistant URL and Observer URL that use the hostname configured in Settings > System > Network > Hostname with .local appended.

I use the home.arpa as the local domain, not .local. .local is really only meant for use with mDNS.

Are the URLs displayed in the SSH banner purely cosmetic, or is HA using the .local domain elsewhere? Is this something I need to fix, or not going to be an issue?