nslookup fails to resolve by IP but not by FQDN, ping works fine for both

I have a Server 2012 Hyper-V server with all Broadcom NICs teamed using BACS4.

2 NICs teamed for the Management

3 NICs teamed for VM001 with NLB

3 NICs teamed for VM002 with NLB

Neither the host nor it's guest servers can resolve IPs with nslookup. Nslookup works fine when resolving the name of the machine and pinging works w/out issue for both IP and name.

error rec'd: *** serverName.domain.local can't find : Non-existent domain

Is there some setting w/in BACS that's causing me not to resolve IPs via nslookup? I've recently installed ManageEngine's Firewall Analyzer on one of this server's VMs and it won't resolve names to IPs in my reports. That's how I found out about the nslookup issue.

...and yes, I do want to have teams set up. If it comes down to it, I guess I could use the teaming built-in to Server 2012 if need be.