All queries come from router, router IP is then rate limited

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I've set up pi-hole (Core v6.0.6 FTL v6.1 Web interface v6.1, Ubuntu 24.04) and set its IP (192.168.1.5) as the DNS server in my router. There are about 10-20 clients on the network. The router is a Unifi UCG-Ultra.

After setting the pi-hole IP in my router's custom DNS server settings, I then set this in "conditional forwarding" (where "localdomain" is the domain shown in my router settings):

true,192.168.1.0/24,192.168.1.254,localdomain

I expected individual host names to start appearing in the pi-hole logs, but in fact conditional forwarding appeared to have no effect. "Top clients" just had one entry, which resolves to the router/gateway address of 192.168.1.254.

I then started to see this error:

RATE_LIMIT Client `192.168.1.254` has been rate-limited for at least 51 seconds (current limit: 1000 queries per 60 seconds)

I have therefore had to remove the pi-hole address from the router's DNS settings.

Do I need to set something on the router and/or conditional forwarding to resolve individual clients?

EDIT: I see "Never forward non-FQDN A and AAAA queries" and "Never forward reverse lookups for private IP ranges" may be implicated. Should I turn on the former and turn off the latter?

BTW I have on other installations used DHCP mode on the pi-hole but would rather I didn't in this case.

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Ah, found it.

I'd got confused between the Unifi UI's "Network" DNS and "Internet" DNS settings. The latter I didn't have pointing to the pi-hole, so it was sending everything through the router.

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