Your debug log shows no errors, and is working fine.
[2022-01-02 22:50:16.071 16268M] Imported 114944 queries from the long-term database
[2022-01-02 22:50:16.072 16268M] -> Total DNS queries: 114944
[2022-01-02 22:50:16.073 16268M] -> Cached DNS queries: 3727
[2022-01-02 22:50:16.073 16268M] -> Forwarded DNS queries: 106040
[2022-01-02 22:50:16.073 16268M] -> Blocked DNS queries: 4190
[2022-01-02 22:50:16.073 16268M] -> Unknown DNS queries: 0
[2022-01-02 22:50:16.073 16268M] -> Unique domains: 1624
[2022-01-02 22:50:16.073 16268M] -> Unique clients: 3
[2022-01-02 22:50:16.073 16268M] -> Known forward destinations: 11
However, you distribute your router's IP as DNS server via DHCP. You could exchange this IP for Pi-hole's IP to announce it as DNS server via DHCP. This would have the advantage that you can see individual clients on your dashboard and can use the group management feature.
[✓] IPv4 address(es) bound to the wlan0 interface:
192.168.1.223/24
*** [ DIAGNOSING ]: Discovering active DHCP servers (takes 10 seconds)
Scanning all your interfaces for DHCP servers
Timeout: 10 seconds
* Received 332 bytes from wlan0:192.168.1.1
Offered IP address: 192.168.1.223
Server IP address: 192.168.1.1
Relay-agent IP address: N/A
BOOTP server: ecosystem.home.cisco.com
BOOTP file: (empty)
DHCP options:
Message type: DHCPOFFER (2)
server-identifier: 192.168.1.1
lease-time: 86400 ( 1d )
renewal-time: 43200 ( 12h )
rebinding-time: 75600 ( 21h )
netmask: 255.255.255.0
broadcast: 192.168.1.255
domain-name: "cust.communityfibre.co.uk"
hostname: "raspberrypi"
dns-server: 192.168.1.1
router: 192.168.1.1
--- end of options ---
Additionally, you use IPv6. That's OK, however your clients got GUA addresses (2a02:....) which might change frequently due to changed prefixes. You should see if you could use stable ULA addresses instead: