Can I connect My Cloud Personal 3TB NAS to a .local domain?

It’s a NAS. The ‘cloud’ bit is an additional function.

Set your three virtual servers to backup to unique folders on the MyCloud. Turn off all unnecessary services (including, I’d suggest, the thumbnailing and indexing services, using SSH*). Job done.

I’d recommend some ‘proper’ backup software, rather than WD’s free tools.

* Hidden .wdmc directories created by mcserver and photodbmerger and the deletion of them

[Useless forum software shows * as an asterisk in the preview, but not when posted, but typing a simple asterisk is interpreted as a formatting command…]