I’m a tiny bit confused. I tried using (hostname).local and it was rejected. I don’t remember the exact error.
I use conditional forwarders in active directory to typically send .local requests directly to my pihole.
Instead of using (hostname).local I was forced to use (hostname).(mydomain).localdomain
I just think that would be confusing for people, and it seems like .local addresses shouldn’t be prohibited. It makes it easier to setup DNS that way, otherwise I need to setup LOCAL dns records on 2 Active Directory machines AND on both of my piholes.