Running puppet help lookup does not indicate that you can use puppet settings as options.
For example, puppet help apply includes this text:
OPTIONS
-------
Note that any setting that's valid in the configuration
file is also a valid long argument. For example, 'tags' is a
valid setting, so you can specify '--tags <class>,<tag>'
as an argument.
See the configuration file documentation at
https://docs.puppetlabs.com/puppet/latest/reference/configuration.html for the
full list of acceptable parameters. A commented list of all
configuration options can also be generated by running puppet with
'--genconfig'.
puppet help lookup only reports the options specific to lookup.
This is an issue for all puppet applications, not just lookup