The problem is that these local queries are by default sent back to the local dns server on the router
But dnsmasq doesn't know how to respond so these requests timeout.
Tue Aug 20 10:22:14 2024 user.notice AdGuardHome[14118]: 2024/08/20 09:22:14.389343 [error] dnsproxy: [::1]:53: response received over udp: "exchanging with [::1]:53 over udp: read udp [::1]:51997->[::1]:53: i/o timeout"
Tue Aug 20 10:22:14 2024 user.notice AdGuardHome[14118]: 2024/08/20 09:22:14.389454 [error] dnsproxy: upstream [::1]:53 failed to exchange ;db._dns-sd._udp.0.1.168.192.in-addr.arpa. IN PTR in 2.001780858s: exchanging with [::1]:53 over udp: read udp [::1]:51997->[::1]:53: i/o timeout
Tue Aug 20 10:22:14 2024 user.notice AdGuardHome[14118]: 2024/08/20 09:22:14.389344 [error] dnsproxy: [::1]:53: response received over udp: "exchanging with [::1]:53 over udp: read udp [::1]:39166->[::1]:53: i/o timeout"
Tue Aug 20 10:22:14 2024 user.notice AdGuardHome[14118]: 2024/08/20 09:22:14.389519 [error] dnsproxy: upstream [::1]:53 failed to exchange ;lb._dns-sd._udp.0.1.168.192.in-addr.arpa. IN PTR in 2.001094585s: exchanging with [::1]:53 over udp: read udp [::1]:39166->[::1]:53: i/o timeout
Tue Aug 20 10:22:14 2024 user.notice AdGuardHome[14118]: 2024/08/20 09:22:14.389343 [error] dnsproxy: [::1]:53: response received over udp: "exchanging with [::1]:53 over udp: read udp [::1]:33294->[::1]:53: i/o timeout"
Tue Aug 20 10:22:14 2024 user.notice AdGuardHome[14118]: 2024/08/20 09:22:14.390245 [error] dnsproxy: upstream [::1]:53 failed to exchange ;b._dns-sd._udp.0.1.168.192.in-addr.arpa. IN PTR in 2.002680514s: exchanging with [::1]:53 over udp: read udp [::1]:33294->[::1]:53: i/o timeout
It's not a circular loop because I've turned off forwarding for Private queries
Queries like dig -z 192.168.1.x return the correct hostname.
But the dns-sd queries just return nxdomain and timeout.