The issue I am facing:
I am running into difficulties getting pi-hole to properly see local machines. When running nslookup or dig. It is going to 8.8.8.8 for resolution instead of itself (127.0.0.1). I can't figure out what configuration I am missing.
Details about my system:
Ubuntu 18.04 in a VM on VirtualBox 6.1.14 on a MacMini host.
What I have changed since installing Pi-hole:
This is a fresh install. This is a test VM that I use to validate upgrades of OS and Pi-hole before I implement on my "production" machine. On the test machine, I did a in place Ubuntu upgrade to 20.04. This broke DNS. Trying to figure out the right procedures so that I can upgrade my "production" Pi-hole.
What's the reasoning behind picking v5-0 and ftldns-beta as categories for your topic?
Pi-hole 5.0 has been released in May 2020 - there is currently no beta test.
With regards to your observation:
It would seem you are referring to DNS resolution for the machine that hosts Pi-hole, and since you are talking about updates, it may be a good idea to read the release notes:
Pi-hole no longer changes the nameserver assigned to the Pi (in /etc/resolv.conf). The existing nameserver settings for the Pi-hole host are respected and unchanged.