Hi,

personally in 15.10 I have

# Tell any system-wide dnsmasq instance to make sure to bind to interfaces
# instead of listening on 0.0.0.0
# WARNING: changes to this file will get lost if lxc is removed.
bind-interfaces
except-interface=lxcbr0
server=/lxc/10.0.3.1

in /etc/dnsmaq.d/lxc

and it does work:

ping precise-gui.lxc
PING precise-gui.lxc (10.0.3.57) 56(84) bytes of data.

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https://bugs.launchpad.net/bugs/1389954

Title:
  Make .lxc domain name resolution easier to discover and enable

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