I'm on Ubuntu 16.04 LTS Server Edition (the host) and running some Trusty 14.04 
LTS LXC-containers in it. Trying to get this DNS-name resolution working I 
added in /etc/default/lxc-net the line: 

and in /etc/dnsmasq.d/lxc added the line:
server=/lxc/ stanza, then 

1. stopped all existing containers
2. run 'sudo service lxc-net restart'
3. restarted the containers

but the DNS-name resolution does not work, e.g
"ping mycont.lxc" or
"dig @ mycont.lxc" 
do not resolve to running LXC IP-address.

Whats wwong, how to get this working? Should I edit the LXC-configs
somehow or is there some other
dns/networking/resolv.conf/dnsmasq/iptables/etc configurations that I
should check to debug why this is not working?

You received this bug notification because you are a member of Ubuntu
Touch seeded packages, which is subscribed to lxc in Ubuntu.

  Make .lxc domain name resolution easier to discover and enable

Status in lxc package in Ubuntu:

Bug description:
  The lxc package on ubuntu does almost nothing to help a user enable
  DNS resolution for containers via dnsmaq, let alone discover that it
  is possible. How about enabling it by default? I think all it would
  take is adding server=/lxc/ to a file in
  /etc/NetworkManager/dnsmasq.d/ and uncommenting LXC_DOMAIN="lxc" in

  Even if there's a good reason not to enable this by default, shouldn't
  it at least be clearly documented someplace obvious instead of buried
  in a system config file with a misleading comment that mentions the
  wrong dnsmasq file to edit? (The one currently mentioned by
  /etc/default/lxc-net does nothing on ubuntu desktop systems, because
  ubuntu's NetworkManager starts dnsmasq with a special config

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