Kresd custom DNS forwarding rule before "Use forwarding" rule

Are you using the new /etc/kresd/custom.conf config? The “table.insert” part should insert the .lan forward before the general forward:

local lan_rule = policy.add(policy.suffix(policy.FORWARD('127.0.0.1@54'), policy.todnames({'lan','168.192.in-addr.arpa'})))
policy.del(lan_rule.id)
table.insert(policy.rules, 1, lan_rule)