Resolve pi.hole/localhost as FQDN

Of course - sorry for not assessing your docker-compose thoroughly enough. :pray:

That REPLY_ADDR4 line is peculiar.
Your docker-compose shows you've correctly and exclusively provided FTLCONF_LOCAL_IPV4, which supersedes the now deprecated REPLY_ADDR4 - so that line shouldn't be there at all.

This rings a bell, as we've had reports about Portainer installations holding on to environment variable values even between container rebuilds/restarts (e.g. see Pihole Portainer/Docker 5.8.1 startup error? - #7 by ptruman or Pihole on Docker always shows old Docker Tag value - #2 by rdwebdesign).

I'm not familiar with Podman, but in addition to rdwebdesign's suggestion to drop the Z flag (which may only be required in SELinux contexts), I'd probably look for ways to clear those env vars with Podman, in case it would do something similar to Portainer.