I follow all the instructions and it works from Sailfish OS itself, it just does not work from the Android layer and both /system /etc/hosts and /etc/hosts files are identical.
When I ping the local host it returns 0.0.0.0 the first time. When I ping localhost after devel-su lxc-attach aliendalvik /system/bin/sh I get 127.0.0.1 but when I ping for example 2no .co as shown in the screenshot of my hosts file it returns iplogger .com with 0 packet loss.