When DCHP provide new IP, the entry in /etc/hosts is correctly added but pdns-recursor service need to be restart to take these new entries in consideration.
service { dhcp-server { hostfile-update shared-network-name LAN { subnet 10.32.0.0/24 { default-router 10.32.0.1 dns-server 10.32.0.1 range 0 { start 10.32.0.50 stop 10.32.0.100 } } } } dns { forwarding { allow-from 10.32.0.0/24 cache-size 0 listen-address 10.32.0.1 name-server 1.1.1.1 name-server 1.0.0.1 name-server 8.8.8.8 name-server 8.8.4.4 } } }