Getting error in log Record not found

[awestwell]

Good Day

1. Install using docker-compose

    ddns:
        container_name: ddns
        image: raptorbox/ddns-amd64
        restart: always
        ports:
            - 5303:5303
            - 5303:5303/udp
            - 50053:50053
        environment:
            - PUID=${DOCKER_PUID}
            - PGID=${DOCKER_PGID}
            - TZ=${DOCKER_TZ}
        networks:
           shared-vlan:
               ipv4_address: 10.22.200.14
        volumes:
            - ${DOCKER_CONTAINERS}/ddns/data:/data

2. Execute curl command to add a record

curl -X POST http://10.22.200.14:5551/v1/record   -H 'content-type: application/json'     -d '{
"ip": "10.22.22.22",
"domain": "foobar.local.lan",
"type": "A",
"expires": 1498454965
}'

JSON Response:
{"ip":"10.22.22.22","domain":"foobar.local.lan","type":"A","expires":1498454965}

3. Executing nslookup command

nslookup foobar.local.lan 10.22.200.14 -port=10053
Server:		10.22.200.14
Address:	10.22.200.14#10053

** server can't find foobar.local.lan: NXDOMAIN

In docker logs for the container I see the following
time="2022-03-23T00:52:54Z" level=info msg="Record not found, key: lan.local.foobar_1"

I would expect the query to return correctly