Devilbox - error, "No Host DNS record found. " even after adding folder name in /etc/hosts/

I am using Devilbox on Ubuntu 22.04, and I have been learning how to work with it through the documentation. I have created a folder inside /data/www/ inside the Devilbox folder, and before that, I have excluded the mention of “htdocs” from the .env file.

After making the changes by adding inside /etc/hosts using sudo nano, I am still seeing the same error “No host DNS found”. I tried running the host in incognito mode to check if cookies were interfering, but the problem remains.