After running
sudo discoveryutil mdnsactivedirectory yes
in the terminal we’re able to resolve .local FQDNs again. This gets it to use regular (unicast) DNS for .local domains rather than just using multicast DNS (mDNS, aka Bonjour) to look-up .local addresses.
Place the following file in /Library/LaunchDaemons: https://gist.github.com/CodingMinds/509bd12a7c7e22f0cfdd
https://discussions.apple.com/thread/6611817?start=15&tstart=0