Using IpvsMethod: "masq" on a Docker host for local container backends is the simplest method in terms of configuration, but it fails at hairpinning: a container connecting to a service with a backend on the same docker bridge (the return path does not pass through the host's IPVS stack).
Ideal situation would be to configure the service VIP as a local route within the docker container, optionally with an IP-IP tunnel endpoint, and using Direct Server Return, avoiding the requirement for a symmetric return path with stateful translation.