TL;DR ...our domain policy silently force pushed the LAN settings (including the proxy reference) to my machine on a predefined interval, which happened to be while I was developing but after I had manually disabled the proxy. Since I knew for a fact that I had disabled it for local addresses, it did not occur to me that it would be the root of my issue.
On one of my development machines that is running Windows Server 2012 R2, I am experiencing curious behavior with local resolution of a host through the hosts file.
[ Description to reproduce ]
Console
C:\Windows\system32>ping baz.inga
Ping request could not find host baz.inga. Please check the name and try again.
C:\Windows\system32>_
Hosts file
127.0.0.1 baz.inga
::1 baz.inga
Back in Console
C:\Windows\system32>ping baz.inga
Pinging baz.inga [127.0.0.1] with 32 bytes of data:
Reply from 127.0.0.1: bytes=32 time<1ms TTL=128
Reply from 127.0.0.1: bytes=32 time<1ms TTL=128
Reply from 127.0.0.1: bytes=32 time<1ms TTL=128
Reply from 127.0.0.1: bytes=32 time<1ms TTL=128
Ping statistics for 127.0.0.1:
Packets: Sent = 4, Received = 4, Lost = 0 (0% loss),
Approximate round trip times in milli-seconds:
Minimum = 0ms, Maximum = 0ms, Average = 0ms
C:\Windows\system32>_
...Then, I host an application on localhost:7890
Fiddler
/GET http://baz.inga:7890
[Expected]: local host resolution resolves "baz.inga" to "localhost" and serves my content
[Actual]: 503 "Service Unavailable" response and a DNS lookup failure
Is there any reasonable explanation as to why this is not resolving locally? I tested the exact same procedure out on a machine running Windows 7 and the response to the HTTP Proxy is a locally resolved resource.
WTH?!?!