It does not. Domain based blocking does not work with youtube.
Your link event says it:
Some ads may […] be served through the same domain as the website, making them harder to block without blocking the website itself.
There is no point in using a proxy for this, because of https it won't be able to block more than with DNS blocking. Maybe a tiny bit more if you set up mitm but that's really not worth it.
You have to set up a proxy.
Even for those who are technical enough to set up a pihole, it's annoying to set up a proxy and some apps simply won't work with it.
I would love to learn how to block YouTube ads with a proxy. Do you have a link to instructions?
Not sure if these instructions work. First result from Google.
It does not. Domain based blocking does not work with youtube.
Your link event says it:
There is no point in using a proxy for this, because of https it won't be able to block more than with DNS blocking. Maybe a tiny bit more if you set up mitm but that's really not worth it.