Unable to reach anything else but .local domain

I installed fresh installation of Home Assistant on my Proxmox server. Right now I am trying to connect to one of my servers with domain: home.lan. When I do ping trueness.home.lan all I get is: ping: bad address ‘truenas.home.lan’. The same goes with everything else.
I set in every place the dns settings. All the configs are below:
ha dns info

fallback: true
host: 172.30.32.3
llmnr: true
locals:
- dns://192.168.88.1
mdns: true
servers:
- dns://192.168.88.1
update_available: false
version: 2024.12.0
version_latest: 2024.12.0

ha network info:

docker:
  address: 172.30.32.0/23
  dns: 172.30.32.3
  gateway: 172.30.32.1
  interface: hassio
host_internet: true
interfaces:
- connected: true
  enabled: true
  interface: enp0s18
  ipv4:
    address:
    - 192.168.88.124/32
    gateway: 192.168.88.1
    method: static
    nameservers:
    - 192.168.88.1
    ready: true
  ipv6:
    address:
    - fe80::107d:5cd2:97a0:1337/64
    gateway: null
    method: disabled
    nameservers: []
    ready: true
  mac: 02:82:01:F5:5D:36
  primary: true
  type: ethernet
  vlan: null
  wifi: null
supervisor_internet: false

My DNS server is from MikroTik that it is way it is set at the same address like the gateway. Only domains that I can successfully reach are those that ends with .local. I use the same DNS server on other systems without any problem…