I have this option enabled and I only can see "localhost" on the list since the beggining.
I recently noticed this because on GL-B3000 the list is by IP

MT6000:
No VPN, no Parental Control. It's running only Adguard Home. I can see only "loalhost" on the list.

B3000:
VPN is on, no Parental Control, also Adguard Home is running. I can see the IP list.