Both, dig and systemd-resolve use getaddrinfo() kernel call. Call getaddrinfo() reads /etc/nsswitch.conf (hosts: section). Normally this contains something like "files myhostname dns."\
So it looks at /etc/hosts first, if it is not successful, it reads /etc/resolv.conf and tries to find any nameservers there.
Hello,
Dig does use systemd-resolve because that is what LXC containers default
to, and I have used dig a lot within LXC containers which querying my
server network.
It is most likely a Arch DNS issue... nothing wrong with the dig tool...
Have a good day,
--
Polarian
GPG signature: 0770E5312238C760
Website: https://polarian.dev
JID/XMPP: polarian@polarian.dev