I found a solution on stackoverflow thanks to @kbenoit there. https://askubuntu.com/questions/117899/configure-networkmanagers- dnsmasq-to-use-etc-hosts
This is not really a bug at all. You just have to configure stuff under /etc/NetworkManager/dnsmasq.d instead, e.g., # echo "addn-hosts=/etc/hosts" > /etc/NetworkManager/dnsmasq.d/hosts.conf # service network-manager restart I will point out the following statement from the networkmanager.conf man page ON THE GNOME WEBSITE (not on the ubuntu 16.04 man page): It is possible to pass custom options to the dnsmasq instance by adding them to files in the "/etc/NetworkManager/dnsmasq.d/" directory. Add any options you want. -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/993298 Title: Please make NetworkManager-controlled dnsmasq respect /etc/hosts To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/network-manager/+bug/993298/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs