As you have local private IP Addresses also on the wan side, the DNS server in Joe discards the DNS response from James by default (as wan should normally have public IPs)
See dnsmasq options. You might need to set rebind protection to 0, or define domains to allow rfc1918 responses (private IP addresses)
rebind_protection boolean 1 --stop-dns-rebind
Enables DNS rebind attack protection by discarding upstream RFC1918 responses
rebind_domain list of domain names (none) --rebind-domain-ok
List of domains to allow RFC1918 responses for, only takes effect if rebind protection is enabled. The correct syntax is: list rebind_domain '/example.com/'