As Kubernetes doesn't use /etc/hosts also it's impossible to maintain all /etc/hosts on the nodes, In my homelab I don't want run a complex dns server, so i just use my router (dns/dhcp) and I add dnsmask as a cache for my multiple kubernetes clusters, so I use dnsmask in a vm as a dns cache where I add local hosts like in /etc/hosts
my configs
[manfred@linux etc]$ cat dnsmasq.conf
listen-address=192.168.178.136
port=53
domain-needed
bogus-priv
resolv-file=/etc/resolv.dnsmasq
host-record=unit0-tenant0.instana.fritz.box,192.168.178.170