[Dnsmasq-discuss] domain-needed is ignored

[Spon Spon]

Hi,
I have following configuration of dnsmasq:
log-facility=/var/log/dnsmasq.log
interface=switch0
cache-size=1024
domain-needed
no-negcache
expand-hosts
domain=b
bogus-nxdomain=86.35.3.192
bogus-nxdomain=86.35.3.193
stop-dns-rebind
rebind-domain-ok=c
log-queries
localise-queries
bogus-priv
local=/b/
server=192.168.2.1

Because of domain-needed option I expected that host only lookup, without domain part will not forwarded to upstream servers (in my case 192.168.2.1, but this seems it is not the case.The dnsmasq run on an EdgeRouter and has following version:
root at bucuresti:/etc# /usr/sbin/dnsmasq --version
Dnsmasq version 2.78-20-geaeda96  Copyright (c) 2000-2017 Simon Kelley
Compile time options: IPv6 GNU-getopt DBus i18n IDN DHCP DHCPv6 no-Lua TFTP conntrack ipset auth DNSSEC loop-detect inotify

This software comes with ABSOLUTELY NO WARRANTY.
Dnsmasq is free software, and you are welcome to redistribute it
under the terms of the GNU General Public License, version 2 or 3.

If I lookup a host with local domain, then the request is not going to upstream server.  Please see below the logged queries:

Jun 21 09:13:31 dnsmasq[21398]: query[A] rrr from 127.0.0.1
Jun 21 09:13:31 dnsmasq[21398]: config rrr is NODATA-IPv4
Jun 21 09:13:31 dnsmasq[21398]: query[AAAA] rrr from 127.0.0.1
Jun 21 09:13:31 dnsmasq[21398]: config rrr is NODATA-IPv6
Jun 21 09:13:31 dnsmasq[21398]: query[MX] rrr from 127.0.0.1
Jun 21 09:13:31 dnsmasq[21398]: forwarded rrr to 192.168.2.1
Jun 21 09:13:38 dnsmasq[21398]: query[A] rrr.b from 127.0.0.1
Jun 21 09:13:38 dnsmasq[21398]: config rrr.b is NXDOMAIN
Jun 21 09:13:38 dnsmasq[21398]: query[A] rrr.b from 127.0.0.1
Jun 21 09:13:38 dnsmasq[21398]: config rrr.b is NXDOMAIN

Is this a bug? Is there any configuration missing?  I expected that rrr lookup wil not be forwarded to upstream server (192.168.2.1)

Thanks,Spon
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