DNS resolution on local network stopped working “;; connection timed out; no servers could be reached”

I have a DNS server (bind9) on my local network, with IP address 192.168.1.11. It is running in a LXD container (Ubuntu Bionic 18.04 for both host and containers). For some reason, the resolution is not working anymore when DNS server is queried by a machine from the local network.

% dig linuxcontainers.org @192.168.1.11

; <<>> DiG 9.11.3-1ubuntu1.9-Ubuntu <<>> linuxcontainers.org @192.168.1.11
;; global options: +cmd
;; connection timed out; no servers could be reached