LAN devices not connected to internet

Then they probably are connected, but dislike Pi-hole's blocking.

You could inspect Pi-hole's Query Log to learn which domains a specific client IP has requested and how Pi-hole processed them, e.g. by clicking on such a client as shown in Pi-hole's dashboard under Top Clients.

How do I determine what domain an ad is coming from? may also help.

That's expected - you are misunderstanding what that nslookup does.
You are asking 192.168.1.229 for DNS resolution, but there is no DNS server on 192.168.1.229.

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