Warp Client and cloudflared tunnel - Overlapping Subnets

Hi All,

We are having some routing difficulties with Cloudflared Gateway Network policies and Endpoints running Warp client. Scenario:

Cloudflared Gateway Policy: Allow all on Destination IP
DNS Policy: Host is SRV2019.mydomain.local → Network Override

Warp Client: Endpoint wont pass requests to SRV2019.mydomain.local to WARP IF Endpoint is on the same range as the Host ( could be home network or internet caffee etc.). So Endpoint will try to resolve this locally. If Endpoint is on different subnet range, there is no problems.

There is no local domain fallback policies for mydomain.local or Split tunnel exclusions for

Has anyone come accross this? Cloudflared Access policies for applications work fine.

Thank you