when you use traceroute, the ip address are resolved to names via the reverse DNS zone. Open your DNS and check the reverse DNS zone. Look for the IP address of your server, you'll probably find it's pointing at the backup.local rather than backup.local.
If you allow dynamic registration in your reverse zone, you can delete the entry and then do an ipconfig /registerdns on your server to correct the entry.
if you don't allow dynamic updates, just delete the existing record and create a new PTR record for the IP with the correct server name.