[iphone] Does hosts file exist on the iPhone? How to change it?

Don't change the DNS on the phone. Instead, connect with wifi to the local network and you are all set.

At my office, we have internal servers with internal DNS that are not exposed to the Internet. I just connect with iPhone to the office wifi and can then access them fine.

YMMV, but instead of configuring the phone DNS, it feels to me that just setting up local internal DNS and wifi is a cleaner and easier solution.