It does. If I ask it directly, it responds just fine to my dig query. It
also responds correctly to systemd (did you see the packet capture?).

Why should /etc/hosts have a bip entry? That's a hack when your dns
server doesn't know about you.

The instance was an upgrade, can't remember now if it was artful or
xenial. I can check if that matters.

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https://bugs.launchpad.net/bugs/1771353

Title:
  Server feature level is now lower than when we began our transaction.
  Restarting with new ID

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