I have a real domain, using cloudflare as my registrar.
When i use the GUI DNS lookup for a local host it does not return the expected A and AAAA records for the host, instead, it responds with the SOA of the NS:
Response	
Type	Address
SOA	brenda.ns.cloudflare.com.
Resolution time per server	
Server	Query time
127.0.0.1	0 msec
1.1.1.1	31 msec
208.67.222.222	32 msec
2606:4700:4700::1111	16 msec
2620:119:35::35	46 msec
I use the shell and do a nslookup the same host it does respond with the proper A and AAAA records for the local host (sanitized output):
root@OPNsense:~ # nslookup wap371.home.mydomain.com
Server:         127.0.0.1
Address:        127.0.0.1#53
Name:   wap371.home.mydomain.com
Address: 10.23.10.21
Name:   wap371.home.mydomain.com
Address: 2605:e000:abcd:ef10:7e69:f6ff:fe36:2f0
Also GUI DNS Lookup only responds with A records.
Looking up dns.google responds with the 2 A type records, but not the AAAA.
Hostname or IP	
dns.google
Response	
Type	Address
A	8.8.8.8
A	8.8.4.4
Resolution time per server	
Server	Query time
127.0.0.1	0 msec
1.1.1.1	19 msec
208.67.222.222	18 msec
2606:4700:4700::1111	20 msec
2620:119:35::35	27 msec
Again the shell using nslookup dns.google.com
root@OPNsense:~ # nslookup dns.google
Server:         127.0.0.1
Address:        127.0.0.1#53
Non-authoritative answer:
Name:   dns.google
Address: 8.8.4.4
Name:   dns.google
Address: 8.8.8.8
Name:   dns.google
Address: 2001:4860:4860::8844
Name:   dns.google
Address: 2001:4860:4860::8888
Any local host doing dns lookup does get the expected responses, is it is as if the DNS Lookup is not actually getting a response from the local unbound.
Reverse lookup of a local IP, both ipv4 and ipv6, does seem work.