I understand this bit but I think the issue, or one can say my confusion is, before setting up Pi Hole I was using dnsmasq for custom domains, for example address=/test.lan/192.168.1.10. The LAN DNS field was set to 192.168.1.1. Now following this method I just add dhcp-option=6,192.168.1.2 in my dnsmasq and I do not touch or change anything in LAN DNS field (that is, it remains 192.168.1.1). My WAN DNS are Google’s. Pi Hole is using Custom DNS for upstream pointed to 192.168.1.1 (my router). With this set-up DNS works okay, internet is fine. But nothing logged in Pi Hole. The query count does not go up when I visit sites and ads are not blocked. However, when I change my LAN DNS in router to 192.168.1.2 (my Pi Hole IP) then Pi Hole starts ad blocking. So the confusion is if I were to use dhcp-option=6,192.168.1.2 option only then why it does not work when I do not change LAN DNS. Is it correct to have LAN DNS to 192.168.1.2 and dhcp-option=6,192.168.1.2 at the same time 'cos that seems to work. Sorry - OP suggestion is very simple but somehow I did not get correct results. Thanks in advance.
Okay, I seem to have solved my issue - or looks like solved unless something pops up later incorrect. I removed the 192.168.1.1 entry under LAN DNS Server 1 and left it blank. I assume by default it is blank as well - I only input 192.168.1.1 for LAN DNS Server 1 in the past following a guide to setup dnsmasq manually. So far after removing this entry the Pi Hole is now seeing the queries and client DNS shows Pi Hole IP as DNS as defined in dnsmasq. For my other uses of dnsmasq, I guess it does not make difference whether I inout 192.168.1.1 in LAN DNS Server 1 cos I assume dnsmasq manual entries will function anyway. Thanks.