your created some groups. The last one is Laptop, with ID=3;
you also configured a few devices. You configured your laptop to use group Laptop;
the Laptop group is not using any lists. This means any device in this group should not be blocked.
On the other hand, I noticed your router is advertising itself as DNS server:
dns-server: 192.168.1.1
router: 192.168.1.1
Apparently your router is the only device using Pi-hole.
In this configuration, your laptop will use the router as DNS server and the router will use Pi-hole.
Pi-hole will only see the router, which is using the Default group.
To make sure, what is the output of these 2 commands, running from your laptop command line?
So do you know why I am experiencing this issue? The Laptop group does not have any associated adlists, so I would expect my laptop to display ads. However as I mentioned, it contributes to block ads.