Option to control cluster.local behavior for MCS

[nmittler]

Task is described in the MCS Host RFC.

We need to add a configuration option to allow the cluster.local host to actually stay in-cluster, as defined by the MCS spec.

Describe the feature request

Describe alternatives you've considered

Affected product area (please put an X in all that apply)

[ ] Docs
[ ] Installation
[x] Networking
[ ] Performance and Scalability
[ ] Extensions and Telemetry
[ ] Security
[ ] Test and Release
[ ] User Experience
[ ] Developer Infrastructure

Affected features (please put an X in all that apply)

[ ] Multi Cluster
[ ] Virtual Machine
[ ] Multi Control Plane

Additional context