It seems at least standardized on Ubuntu Desktop.

Creating a  /etc/NetworkManager/dnsmasq.d/lxd.conf file and restarting
network manager will do the trick, keeping the majority of developers
happy:

    server=/lxd/10.0.4.1

(using the correct IP per lxd-bridge config of course)

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https://bugs.launchpad.net/bugs/1571967

Title:
  .lxd domain resolution not working after standard installation

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