It’s not required, but it is a long standing convention with the justification that it makes for easier troubleshooting.
https://web.mit.edu/kerberos/www/krb5-latest/doc/admin/realm...
https://web.mit.edu/kerberos/www/krb5-latest/doc/admin/realm...
[domain_realm]
.domain.com = DOMAIN.COM
domain.com = DOMAIN.COM