NextDNS CLI not reporting hostnames

Hello,

I have nextdns cli running on two raspberry pi's. I have discovery DNS pointing to my firewall gold+.

I verified the fwg+ is responding to ptr DNS requests with the correct hostnames for a given IP address. But in the nextdns logs it still shows weird device names like Device #DJQR4.

Here is my config

profile myconfiig
report-client-info true
detect-captive-portals false
use-hosts true
debug false
log-queries false
mdns disabled
setup-router true
auto-activate true
listen localhost:53
control /var/run/nextdns.sock
max-ttl 5s
discovery-dns 10.0.1.1
max-inflight-requests 256
cache-size 10MB
cache-max-age 0s
hardened-privacy false
bogus-priv true
timeout 5s

Any help is appreciated.