[CentOS] CentOS 8 DNS resolution not working as expected

Thu Aug 6 09:26:40 UTC 2020
isdtor <isdtor at gmail.com>

[root at localhost ~]# lsb_release -d
Description:	CentOS Linux release 8.2.2004 (Core) 
[root at localhost ~]# cat /etc/resolv.conf 
# Generated by NetworkManager
search subdomain.company.com company.com
nameserver 1.2.3.4
nameserver 5.6.7.8

[root at localhost ~]# host foo
foo.subdomain.company.com has address 1.2.3.4

[root at localhost ~]# host foo.subdomain
Host foo.subdomain not found: 3(NXDOMAIN)

[root at localhost ~]# host foo.subdomain.company.com
foo.subdomain.company.com has address 1.2.3.4
[root at localhost ~]# 

The expected result is that the lookup for foo.subdomain works, like it does under CentOS < 8.

I tested this also on a RHEL8 machine and followed https://access.redhat.com/documentation/en-us/red_hat_enterprise_linux/8/html/configuring_and_managing_networking/manually-configuring-the-etc-resolv-conf-file_configuring-and-managing-networking to disable DNS processing by NM, but this did not change the outcome.

How can the pre-CentOS 8 behaviour be restored?