It does support it, you just have to add it to dnsmasq. I have it Setup under misc.dnsmasq_lines like so:

address=/proxy.example.com/192.0.0.100
local=/proxy.example.com/

Then I have my proxied service reachable under service.proxy.example.com

I really gotta double check on my laptop, but I am using the nvidia-580xx-dmks aur package with the latest kernel (should be 6.18) without Problems.

But then again a lot of the “normal” HW acceleration is handled by the igpu there.