Windows 2012 question

I just started my lab but have a question of joining to domain. My Domain name is XYZ.local. When I got to join the domain I enter XYZ thinking it will join but doesn't detect the domain. When I type in XYZ.local it finally detects it. The NETBIOS name is XYZ. Any reason why this isnt workin? The computer trying to join the domain does have the dns set to the server.

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