Okay so after digging around all network config on the server it seemed that since I used custom hosts file on local for system wide additional layer of protection against ad tracking and malicious websites, just like IPFilter on ~Mule. As it was updated it created symlink to /etc/hosts file bind to /sys/data so it broke the link to hostname.
So go to /etc/hosts and find IPv4/IPv6 offending entries like this:
127.0.0.1 localhost #IPv4
127.0.0.1 localhost.localdomain localhost localhost4.localdomain4 localhost4
::1 localhost # IPv6
::1 localhost localhost.localdomain localhost6 localhost6.localdomain6
and change it to something like this:
127.0.0.1 localhost.localdomain localhost HOSTNAME
::1 localhost localhost.localdomain HOSTNAME
Where HOSTNAME is just input your current. Now for it to take effect it depends on your network config as some clear hosts cache on every DNS request so file is read again. If its don't work then reload network (service networking restart) or reboot (init 6).