MagicDNS not prioritizing local DNS for local IPs

Say I have a Windows 10 client:

WORKSTATION01 \ 192.168.0.100 LAN \ 100.100.2.100 TSnet

SERVER01 \ 192.168.0.200 LAN \ 100.100.1.200 TSnet

If I attempt to connect to the server using DNS: \SERVER01\Share01\ it’s connecting over tailscale even though WORKSTATION01 and SERVER01 are both on the LAN.

This is an unexpected and undesirable outcome.

If I map the share to \SERVER01.DOMAIN.COM\Share01 then it maps correctly but now when remote workers attempt to connect, they route through the SubnetRouter not the direct \SERVER01.TS.net\Share01 connection?