Your debug log is showing that your router is at 192.168.2.1
. And then there is a DHCP server at .254
responding.
[i] Default IPv4 gateway(s):
192.168.2.1
* Pinging first gateway 192.168.2.1...
[✓] Gateway responded.
Scanning all your interfaces for DHCP servers
* Received 328 bytes from eth0:192.168.2.254
It's difficult to know how much of what you are seeing is down to your router setup. There is a separate DHCP server and your gateway is not at the address you think it's at.
I would suggest temporarily taking Pi-hole out of the equation and configuring your network so that it is laid out correctly and works. Ensure that devices on your network are using the router and have an Internet connection. This can then be considered a known working baseline.
Once that is in place you can introduce the Pi-hole at a fixed IPv4 address on the network and confirm that it too has an Internet connection. You can then test Pi-hole by making DNS requests against it and looking for a 0.0.0.0
response indicating the domain is blocked, for example:
nslookup flurry.com IP_OF_PIHOLE
Once confirmed as working, update the DHCP server to tell clients to use the Pi-hole for DNS.
It's okay to do that for testing, but while they are disabled they are not blocking anything, and the debug log is reflecting that.