More likely they just bypass looking at the local hosts file for such names, so the request always goes out to your DNS servers.
Therefore blocking these names by redirecting to 127.0.0.1 will work if done at your DNS server (for instance if you run an instance of https://pi-hole.net/ for that).
Unless of course they make the lookup use specific name servers that they run, instead of the local resolvers that your machine is configured to look at, for those names but that is less likely.
In that last case, you can often redirect those queries if they are standard DNS requests on your router. That's how my local network is configured -- all DNS requests are sent to my Pi-hole instance, except those coming from the Pi-hole itself. Even something like:
More likely they just bypass looking at the local hosts file for such names, so the request always goes out to your DNS servers.
Therefore blocking these names by redirecting to 127.0.0.1 will work if done at your DNS server (for instance if you run an instance of https://pi-hole.net/ for that).
Unless of course they make the lookup use specific name servers that they run, instead of the local resolvers that your machine is configured to look at, for those names but that is less likely.