Is on-premise data gateway recongize HOSTS file?

We have SP2019 farm with URL https://sharepoint.com . Our users need to edit their PC's HOSTS file, point sharepoint.com to an internal IP address in order to access SP2019.

On the server we installed on-premise data gateway, we also updated the HOSTS file. However it seems not working. I cannot find any reference talk about this part. Could you please clarify how the gateway resolve the data source URL?

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