[MT3000] DNS resolution for my internal names are not working with Wireguard Client

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?

.local is used by mDNS (like Bonjour for example) and should be avoided. Would be better to use a „real“ domain like „mynetwork.bla“

It makes sense. In fact I use both ".mydomain.com" and .local, when I'm home or connected directly to my home net I like to use .local only for simplicity.
While I understand it's not a good practice, shouldn't the resolution work?

Not sure, sorry.

.local is handled by clients as well, so maybe there are interferences.