Fresh install on Ubuntu 20.04.1 LTS failed at DNS resolution

Expected Behaviour:

fresh install of pihole on an Ubuntu 20.04.1 LTS (HYPERV VM) with the command
curl -sSL https://install.pi-hole.net | bash
Pihole should be installed and DNS resolution should be ok.

the installation silently failed after displaying those lines:

  [✓] Deleting existing list cache
  [✗] DNS service is not running
  [✓] Restarting DNS server
  [✗] DNS resolution is not available

Actual Behaviour:

no more DNS resolution server wide.
when trying to debug why DNS resolution is broken, I've tried to : cat /etc/resolv.conf
which stated that my actual DNS is 127.0.0.53 ???

# This file is managed by man:systemd-resolved(8). Do not edit.
#
# This is a dynamic resolv.conf file for connecting local clients to the
# internal DNS stub resolver of systemd-resolved. This file lists all
# configured search domains.
#
# Run "resolvectl status" to see details about the uplink DNS servers
# currently in use.
#
# Third party programs must not access this file directly, but only through the
# symlink at /etc/resolv.conf. To manage man:resolv.conf(5) in a different way,
# replace this symlink by a static file or a different symlink.
#
# See man:systemd-resolved.service(8) for details about the supported modes of
# operation for /etc/resolv.conf.

nameserver 127.0.0.53
options edns0 trust-ad

When inspecting the DNS servers with resolvectl status

Global
       LLMNR setting: no
MulticastDNS setting: no
  DNSOverTLS setting: no
      DNSSEC setting: no
    DNSSEC supported: no
          DNSSEC NTA: 10.in-addr.arpa
                      16.172.in-addr.arpa
                      168.192.in-addr.arpa
                      17.172.in-addr.arpa
                      18.172.in-addr.arpa
                      19.172.in-addr.arpa
                      20.172.in-addr.arpa
                      21.172.in-addr.arpa
                      22.172.in-addr.arpa
                      23.172.in-addr.arpa
                      24.172.in-addr.arpa
                      25.172.in-addr.arpa
                      26.172.in-addr.arpa
                      27.172.in-addr.arpa
                      28.172.in-addr.arpa
                      29.172.in-addr.arpa
                      30.172.in-addr.arpa
                      31.172.in-addr.arpa
                      corp
                      d.f.ip6.arpa
                      home
                      internal
                      intranet
                      lan
                      local
                      private
                      test

Link 3 (docker0)
      Current Scopes: none
DefaultRoute setting: no
       LLMNR setting: yes
MulticastDNS setting: no
  DNSOverTLS setting: no
      DNSSEC setting: no
    DNSSEC supported: no

Link 2 (eth0)
      Current Scopes: DNS
DefaultRoute setting: yes
       LLMNR setting: yes
MulticastDNS setting: no
  DNSOverTLS setting: no
      DNSSEC setting: no
    DNSSEC supported: no
         DNS Servers: 192.168.0.254
                      80.67.169.12
                      80.67.169.40
                      fd0f:ee:b0::1

I've managed to access pihole's interface after running sudo pihole -a -p
Installation should state that everything is correctly installed and working and internet with DNS resolution is still up and ok

Debug Token:

Full debug log removed by moderator and made private.

This from your debug log:

*** [ DIAGNOSING ]: Pi-hole diagnosis messages
   id    timestamp            type                  message                                                       blob1                 blob2                 blob3                 blob4                 blob5               
   ----  -------------------  --------------------  ------------------------------------------------------------  --------------------  --------------------  --------------------  --------------------  --------------------
   1     2021-01-08 13:57:21  DNSMASQ_CONFIG        cannot access /etc/dnsmasq.d/lxd: No such file or directory

Please post the output of these commands from the Pi terminal:

pihole-FTL dnsmasq-test

sudo grep -v '#\|^$' -R /etc/dnsmasq.*

modo@modo:~$ pihole-FTL dnsmasq-test

dnsmasq: cannot access /etc/dnsmasq.d/lxd: No such file or directory
modo@modo:~$ sudo grep -v '#\|^$' -R /etc/dnsmasq.*
sudo: unable to resolve host modo: Temporary failure in name resolution
[sudo] password for modo:
/etc/dnsmasq.conf:conf-dir=/etc/dnsmasq.d
/etc/dnsmasq.conf.old:conf-dir=/etc/dnsmasq.d
grep: /etc/dnsmasq.d/lxd: No such file or directory
/etc/dnsmasq.d/01-pihole.conf:addn-hosts=/etc/pihole/local.list
/etc/dnsmasq.d/01-pihole.conf:addn-hosts=/etc/pihole/custom.list
/etc/dnsmasq.d/01-pihole.conf:localise-queries
/etc/dnsmasq.d/01-pihole.conf:no-resolv
/etc/dnsmasq.d/01-pihole.conf:cache-size=10000
/etc/dnsmasq.d/01-pihole.conf:log-queries
/etc/dnsmasq.d/01-pihole.conf:log-facility=/var/log/pihole.log
/etc/dnsmasq.d/01-pihole.conf:local-ttl=2
/etc/dnsmasq.d/01-pihole.conf:log-async
/etc/dnsmasq.d/01-pihole.conf:server=1.1.1.1
/etc/dnsmasq.d/01-pihole.conf:server=1.0.0.1
/etc/dnsmasq.d/01-pihole.conf:interface=eth0
/etc/dnsmasq.d/01-pihole.conf:server=/use-application-dns.net/

I've checked with:

modo@modo:~$ ll /etc/dnsmasq.d/lxd
lrwxrwxrwx 1 root root 28 Apr 26  2018 /etc/dnsmasq.d/lxd -> /etc/dnsmasq.d-available/lxd

but there is no /etc/dnsmasq.d-available/ directory available

Should I remove the symbolic link ?

Did I miss something before trying to install pihole ?

i've managed to foudn someone with the same problem :

all i did to solve the problem is removing the link

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