Yes, orchestrator network configuration reflects the same situation. When I select 192.168.1.50 as IP address it shows me 192.168.1.50 as DNS name. And if I select 127.0.0.1, then DNS name is vco.local.lan.
And I don't see what could be wrong with appliance configuration. Hostname is "vco", IP address/subnet mask is specified correctly. Gateway and DNS server addresses are also checked.
And as I mentioned, doing "nslookup" from appliance's command line provides correct results for resolving both - IP address and FQDN.