I’ve just been hit by this too. In the past @vcunat has helped myself and others forward local queries to dnsmasq running on port 5353 via a kresd.custom.conf file. E.g. in the thread: DNS forwarding to a different DNS for the internal lan
From a quick scan of the new documentation, the only change I needed to make was switching from:
policy.add(policy.suffix(policy.FORWARD('127.0.0.1@5353'), policy.todnames( ...
to:
policy.add(policy.suffix(policy.STUB('127.0.0.1@5353'), policy.todnames( ...
Following this change, the setup described in that previous thread appears to be working again.