Brave ignoring local DNS

My regular user profile started ignoring all of my local DNS queries yesterday.
Anonymous profile works

Yes I’m absolutely sure DNS over HTTPS is disabled.
OS resolves local DNS records properly, so do other browsers (and Brave in anonymous window, so it is a profile issue)

Windows 11 23H2
Brave 1.60.118 Chromium: 119.0.6045.163

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