Dns localhost

my new pi is resolving ip to localhost .

one thing I am not sure is how block ads is working on this pi when /etc/resolv.conf points to gw 192.168.1.1 and not to the other pi I have pi-hole installed

then my main issue is when I connect to this pi from inside the network using its ip it fails because it is resolving to localhost .
under top clients i see entry for localhost. where is that coming from
hope someone can help with these 2 issues

Please give more information and background. I can not understand your issue, beyond Pi-hole somehow resolving an IP to localhost (it only resolves domains, not IP addresses).

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