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However, when "On connect, always get: Host name" is enabled, the DNS request for that does not go through the SOCKS5 proxy, as seen in Wireshark.

The "On connect, always get" option is used to determine your own connection's address. In the case of the "normal" lookup method, it gets this locally from your own computer. In the case of the "server" lookup method, it gets this from the IRC server using a /userhost. For most users, it is better to use the "server" lookup method, which is why it is enabled by default. If the "normal" lookup method is not working for you, you should switch back to the "server" lookup method.