Well prior this new feature in 3.8, I used to apply some hacks from these forums to enable DHCP names resolution via DNS (by knot/kresd).
The problem was that this was prone to breaking after Turris updates. I decided to stop relying on this and realized that I need that only for a few known machines in my LAN. So I configured DHCP to assign them “Static leases” via luci/admin/network/dhcp. And then I defined hostnames for those same static IPs via luci/admin/network/hosts. This has been working well for me without breakages. I assume generated /tmp/hosts/dhcp from hostnames gets somehow recognized by knot (kresd).
Now when updated to 3.8+ I enabled their glue script and I can confirm this Foris’s setting works well with knot and all DHCP names are resolvable through DNS as [name].lan. This does not interfere with my own fixed hostnames settings, because they should provide the same name/IP pairs as automatic list generated by /etc/resolver/dhcp_host_domain_ng.py. And if automated script breaks in the future for some reason, my hostnames solution will still work for names I care about.