Hi, I am running a very similar setup, also on Sid/Testing (updated
daily), and didn't notice any change. My local domain is not ".local" or
".home", it is custom.
My resolv.conf looks like yours (modulo the domain name), I have an
additional nameserver line for my router address. My router only
resolves names for the local network, public DNS is resolved though a VPN.
My hosts file is just standard :
<IP> <hostname.domain> <hostname>
one line per host on the network, the router has the same hosts file,
the IP are reserved by the router DHCP and associated with (static
spoofed) MAC addresses. Routers are running on Asuswrt-Merlin and
openWRT (one is AP mode only).
ssh here works with both hostnames short alias (no domain), full name or IP.
<nslookup> <hostname.domain> <router IP>
works as expected and return the host IP.
Since we probably have the same packages versions let me know if you
need me to check anything that could differ from your system.