In ubuntu 12.04 dig and nslookup work differently, dig and nslookup are dns server checking tools and they connect directly to DNS servers, but the internal applications like puppet do not work like dig / nslookup they use a different linux /unix function (gethostname) which can be executed using "getent ahosts", you can also verify if your entry is working by executing the below mentioned commands.
getent ahosts => will list all host output using gethostname()
getent ahosts => will list all host output using gethostname()
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