Yes, my ISP assigned me a .0 address once, it caused some issues with some sites. Short-sighted filtering methods - but I was the one who paid the price for their crap filtering. I just changed my MAC and got a new address once I got tired of messing with it.
Can confirm this issue in version 4.7.0/4.0.
Wireguard spec says that DNS = 8.8.8.8, mydomain.local should be a valid configuration to specify search domain but the item and file configuration form both fail validation for it.
Force inserting the domain search value by manually editing /etc/config/wireguard or by manually editing a validated form submission accepts the values but doesn't actually change the behavior. It seems the implementation doesn't respect the domain search parameter at all. I haven't tried abandoning the GL-iNet Wireguard GUI and using the LuCI plugin yet but will probably do so and report back here if it's a valid workaround while GL-iNet works on meeting spec.