You cannot resolve anything in a domain with local as ending (e.g. lubby.local)
This is by design and is correct. The local domain is used for zeroconf.
You can configure your system so it will resolv the local domain by changing /etc/host.conf. This host file has to be added one line "mdns off". By doing this you tell the system not to use the zeroconf multicast channels to resolve these domains and to use the normal dns name resolution.
Once again, zeroconf is a standard. The systems normal behaviour is correct.
About the Author
Wim Peeters is electronics engineer with an additional master in IT and over 30 years of experience including time spent in support, development, consulting, training and database administration. Wim has worked with SQL Server since version 6.5. He has developed in C/C++, Java and C# on Windows and Linux in different European countries and different European languages. He writes knowledge base articles to solve IT problems and publishes them on the Lubby Knowledge Platform where he is one of the most important contributors and the main developer.