On a Ubuntu 20.04 AWS EC2 instance, an application need to resolve .local zone. It is a private zone, created in Route53, accessible only from the VPC. From a CentOS 7 instance (without systemd-resolved) it is resolved without problems. The problem is on the Ubuntu instance (with systemd-resolved installed by default):
$ nslookup kafka.local
Server:         127.0.0.53
Address:        127.0.0.53#53
** server can't find kafka.local: SERVFAIL
$ dig kafka.local
; <<>> DiG 9.16.1-Ubuntu <<>> kafka.local
;; global options: +cmd
;; Got answer:
;; WARNING: .local is reserved for Multicast DNS
;; You are currently testing what happens when an mDNS query is leaked to DNS
;; ->>HEADER<<- opcode: QUERY, status: SERVFAIL, id: 23891
;; flags: qr rd ra; QUERY: 1, ANSWER: 0, AUTHORITY: 0, ADDITIONAL: 1
;; OPT PSEUDOSECTION:
; EDNS: version: 0, flags:; udp: 65494
;; QUESTION SECTION:
;kafka.local.                   IN      A
;; Query time: 0 msec
;; SERVER: 127.0.0.53#53(127.0.0.53)
;; WHEN: Tue Jun 15 08:50:54 UTC 2021
;; MSG SIZE  rcvd: 40
$ dig kafka.local @10.0.0.2
; <<>> DiG 9.16.1-Ubuntu <<>> kafka.local @10.0.0.2
;; global options: +cmd
;; Got answer:
;; WARNING: .local is reserved for Multicast DNS
;; You are currently testing what happens when an mDNS query is leaked to DNS
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 4188
;; flags: qr rd ra; QUERY: 1, ANSWER: 1, AUTHORITY: 0, ADDITIONAL: 1
;; OPT PSEUDOSECTION:
; EDNS: version: 0, flags:; udp: 4096
;; QUESTION SECTION:
;kafka.local.                   IN      A
;; ANSWER SECTION:
kafka.local.            60      IN      A       10.0.0.57
;; Query time: 4 msec
;; SERVER: 10.0.0.2#53(10.0.0.2)
;; WHEN: Tue Jun 15 08:52:28 UTC 2021
;; MSG SIZE  rcvd: 56
$ cat /etc/resolv.conf
nameserver 127.0.0.53
options edns0 trust-ad
search ec2.internal
$ systemd-resolve --status
Global
       LLMNR setting: no
MulticastDNS setting: no
  DNSOverTLS setting: no
      DNSSEC setting: no
    DNSSEC supported: no
          DNSSEC NTA: 10.in-addr.arpa
                      16.172.in-addr.arpa
                      168.192.in-addr.arpa
                      17.172.in-addr.arpa
                      18.172.in-addr.arpa
                      19.172.in-addr.arpa
                      20.172.in-addr.arpa
                      21.172.in-addr.arpa
                      22.172.in-addr.arpa
                      23.172.in-addr.arpa
                      24.172.in-addr.arpa
                      25.172.in-addr.arpa
                      26.172.in-addr.arpa
                      27.172.in-addr.arpa
                      28.172.in-addr.arpa
                      29.172.in-addr.arpa
                      30.172.in-addr.arpa
                      31.172.in-addr.arpa
                      corp
                      d.f.ip6.arpa
                      home
                      internal
                      intranet
                      lan
                      local
                      private
                      test
Link 2 (ens5)
      Current Scopes: DNS
DefaultRoute setting: yes
       LLMNR setting: yes
MulticastDNS setting: no
  DNSOverTLS setting: no
      DNSSEC setting: no
    DNSSEC supported: no
  Current DNS Server: 10.0.0.2
         DNS Servers: 10.0.0.2
          DNS Domain: ec2.internal
Is there any possible configuration to make systemd-resolved to resolve this .local zone correctly?