Similarly, I've seen several daily instances of Connection error (192.168.x.x#53): TCP connection failed (Connection refused) from my upstream DNS server, SmartDNS, and no-0x20-encode has (so far) eliminated this error.
(I have separated your pots into a topic of its own, as Connection refused is different from Operation in progress.)
Please upload a debug log and post just the token URL that is generated after the log is uploaded by running the following command from the Pi-hole host terminal:
OP was using a public DNS server (OpenDNS), not another DNS server on their private network, and their message details were (Operation in progress), not (Connection refused).
You'd have to investigate why your SmartDNS server is refusing Pi-hole's DNS requests, e.g. because a firewall on that 192.168.7.8 is blocking access.
If it's neither a firewall nor SmartDNS actively refusing those requests, then your SmartDNS server may have been unresponsive when those messages were logged.
Would your SmartDNS or at least the machine it runs on register Pi-hole's requests?