Those worries are unjustified.
Your debug log shows that you've enabled Pi-hole's Conditional Fowarding, which may close a partial DNS loop for unknown/undefined local hostnames, but only if your router would use Pi-hole as an upstream resolver.
A DNS loop would result in no DNS resolution at all, as DNS requests would bounce between Pi-hole and its upstream forever or until time-out, if Pi-hole's rate-limiting wouldn't kick in first.
Your debug log shows no signs of rate-limiting, and in conjunction with your stats results, there is no indication that has happened during the last 24 hours.
Furthermore, if it had, it would have affected local hostname resolution exclusively.
None of this would contribute to your rermaining observation:
Your Pi-hole's Query Log shows that Pi-hole sees DNS requests and does not block them.
The most likely explanation would have been that you've either disabled Pi-hole's blocking at some time or that you've exempted certain clients from filtering via Pi-hole's group management.
However, neither your stats nor your debug log would indicate that this has been the case.
Certain aspects of your debug log would suggest that your Pi-hole is running on DietPi OS.
Did you install Pi-hole via DietPi's installer?
Unrelated, but I notice a few quirks in your debug log that would interfere with mDNS resolution (click for more)
Your screenshots show that you use local
as the forwarding local domain.
You should be aware that .local
is reserved for use by the mDNS protocol and should NOT be used with DNS.
In your case, local
also differs from the domain name used by your router, which your screenshots show as localdomain
.
As your router would only know about hostname.localdomain
(if at all), this would mean that requests for domains like hostname.local
could close a loop if your router would use Pi-hole as upstream.
You have defined quite a few clients in the form hostname.local
in your debug log that would have prevented that from happening for those names .
Still, those names should be removed, as .local
is reserved for mDNS.
In addition, your debug log suggests that some homeassistant process binds port 5353, which is also reserved for mDNS usage.
What's the reasoning behind that?