You must add A record for wagtail subdomain. And it must be wagtail.YOUR_LMS_HOST
let me explain:
If your domain is solo.io (LMS) your wagtail must be subdomain wagtail. so it will be served on wagtail.solo.io
So you don’t need add your /etc/hosts file… this is just alias for local test on your local PC
if you added A record to your subdomain for wagtail so just remove it on your /etc/hosts file…