My setup is the following
MB Pro -> MT3000 connected to Public Network -> Wireguard Client -> My home network
My MB Pro can't resolve names that I know my wireguard server can resolve like "desktop.local". If I connect the MacBook pro directly to the wireguard server and use the same DNS it will work. I think there's some problem to resolve ".local" names specifically for some reason, cause I know all other DNS queries are running through my WG server given all ads are being blocked (my home network has an adguard home blocking these)
For the ".local" queries they return NXDOMAIN and looking at my home's network adguard I can't see the queries ever reaching it so the MT3000 is not forwarding these it seems. Any hints?