AFAICS the new functionality is primary useful for administrators who want to simplify the life for the users in advance so a user who does not want to edit ssh/.config on a company laptop can always type ssh short-name no matter if the laptop is on the intranet or internet and even if the company uses several dns zones.
This is not a common use case and does not justify the complexity of the new rules when the same can be trivially archived by extending the proxy command to both return the the universal name corresponding to the given short name and to connect to that name.
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