Maybe I'm wrong, but that just seems to show that if you want to resolve lxd domains (hostnames?), you need to inform systemd-resolved to ask lxd for those domains, which is... sensible?
> you should notify resolved of the domains that LXD can resolve
You'd have the same issues if you replaced systemd-resolved with e.g. dnsmasq. Split DNS always needs resolver configuration.
I think it's just someone unhappy that they used to be able to edit resolve.conf before systemd-resolved took it over. I recall being annoyed about it as well, but that was some time ago.