This seems to be a behavior difference which only started in either 18.10 or 19.04.
While avahi-resolve --name my.subdomain.local returns a valid IP address and is working it doesn't work outside of that, i.e. ping, curl or chrome.
The name resolution does still work though for subdomain.local. This seems to be related to the fact that *.subdomain.local is resolved as mDNS CNAME.
Content of nsswitch.conf
passwd: compat systemd
group: compat systemd
shadow: compat
gshadow: files
hosts: files mdns4_minimal [NOTFOUND=return] dns
networks: files
protocols: db files
services: db files
ethers: db files
rpc: db files
netgroup: nis
Content of /etc/resolv.conf
nameserver 127.0.0.53
options edns0