As I just said because of domain name authority. In your domain registration you defined 2 or more nameservers that are authoritative for that domain. If you have a DHCP server on your LAN, your clients will register their names with your LAN-based nameserver rather than the authoritative one (in Asuswrt's case, the dnsmasq instance on your router). When doing name resolution, that LAN server will believe to be authoritative for the entire domain, preventing (for instance) forwarding requests for "public" entries to the upstream nameserver (to be sent ultimately to the authoritative nameserver for resolution), making it impossible to properly resolve your own domain.
And if you somehow properly configure your LAN's nameserver to not be authoritative, it means all your Windows clients will be spamming your authoritative nameservers with host registration requests that will be rejected, but still will fill up that nameserver's logs with the rejected attempts.
I've seen too many customers having issues caused by this. My public nameservers are getting spammed with registration attempts from Windows clients. Or whenever I make a change to their authoritative DNS, they have to manually replicate the same change to their Windows server's own DNS, otherwise they are unable to access the new entry.
When on a LAN, you should use a non-public domain (more specifically a non-public TLD).