Well, that really isn's an error message. It just means that there is no domain set on your system. It's nothing to worry about and would not keep you from loading into a Xorg GUI. For more info on setting your hostname in Funtoo see: https://www.funtoo.org/Hostname
Before we get to deep into this please post the output "ego profile show" and "emerge --info" and we will see if that gives us any clues.
I rolled my filesystem back to a snapshot taken on Oct 8. This was before the update that installed LXD 3.6 and everything started correctly from openrc. Now I just need to install the updates from the past month and hope the issue doesn't resurface.