Docker apache2 /etc/hosts ignored works only with localhost

I have successfully set up Docker, Apache2, PHP in separate containers. I can access my website via http://localhost:8080.

The problem I have is to do with /etc/hosts file (I think). Let’s take a look at my docker-compose file:

apache2:
    build:
      context: ./apache2/
      dockerfile: Dockerfile
    container_name: apache2
    image: httpd:2.4.39-alpine
    ports:
      - 8080:80
    volumes:
      - ../:/srv/app
    extra_hosts:
      - "custom-website-name.local:127.0.0.1"

As you can see I did add the extra host in there and it even appears in /etc/hosts file in the container. However, no matter what I do and what changes do I make(manually on the LIVE container and in config) I can’t force my setup to recognize that new host.

I also have vhost config in place:

LoadModule deflate_module /usr/local/apache2/modules/mod_deflate.so
LoadModule proxy_module /usr/local/apache2/modules/mod_proxy.so
LoadModule proxy_fcgi_module /usr/local/apache2/modules/mod_proxy_fcgi.so

<VirtualHost *:80>
    ServerName www.custom-website-name.local
    ServerAlias custom-website-name.local
    # Proxy .php requests to port 9000 of the php-fpm container
    ProxyPassMatch ^/(.*.php(/.*)?)$ fcgi://webapp:9000/srv/app/public/$1
    DocumentRoot /srv/app/public
    <Directory /srv/app/public>
        DirectoryIndex index.php
        Options Indexes FollowSymLinks
        AllowOverride All
        Require all granted
    </Directory>

    # Send apache logs to stdout and stderr
    CustomLog /proc/self/fd/1 common
    ErrorLog /proc/self/fd/2
</VirtualHost>

Which is copied into the config. It all seems to be not enough at this point I can access my website only via http://localhost:8080 and http://custom-website-name.local:8080 gives me This site can’t be reached which means that new name was not resolved.

The question of course is: what am I missing? I have no clue what else I can try (and I did try the whole bunch of things).

EDIT:

I did add an entry to local (non docker) /etc/hosts as well – did not help.

Source: StackOverflow