[LEDE-DEV] resolv.conf not localhost anymore?

[Weedy]

So I just ran into this updating master from 2ish weeks ago.

root at OpenWrt:~# cat /tmp/resolv.conf
# Interface wan
nameserver 206.248.154.170
nameserver 206.248.154.22
root at OpenWrt:~# cat /tmp/resolv.conf.ppp
nameserver 206.248.154.170
nameserver 206.248.154.22

root at OpenWrt:~# /usr/sbin/ntpd -n -d -q -p ntp-server.lan -p
ntp1.torix.ca -p tick.usask.ca
ntpd: bad address 'ntp-server.lan'
ntpd: bad address 'ntp-server.lan'
< repeated forever >

A: wasn't the system resolv.conf just 127.0.0.1?
B: this host is in /etc/hosts, so why isn't that being picked up?
C: is there a config option somewhere I can't set to specify what I
want in the systems resolv.conf?

note: I script my builds, but the script boils down to running
./scripts/env to switch to the board I'm building and then
echo 'CONFIG_TARGET_ar71xx=y
CONFIG_TARGET_ar71xx_generic=y
CONFIG_TARGET_ar71xx_generic_DEVICE_wndr3700=y
CONFIG_PACKAGE_wpad=y
CONFIG_PACKAGE_wpad-mini=n
' > .confg && make defconfig
Or whatever the CONFIG_TARGET do jour is. I did a fresh distclean
before sending this email, still broken.