SPM uses System.Net.DNS.BeginGetHostEntry to return the host entries for a given IP Address or device name. We walk the list and ignore entries that are not IPv4 or IPv6 entries. We use the first IPv4 entry returned. If no IPv4 entry is returned we use the first IPv6 entry. If there are no IPv4 or IPv6 entries the resolution fails and an error message is provided.
this actually means it is using the DNS configured on your network adapter settings. If the DNS is not reachable or it does not resolve the ip addresses into names, the application will not be able to get the names.