I've successfully installed pi-hole on a VMware Fusion CentOS 8 Guest OS
This works fine inside the guest.
I've configured my Mac his to redirect all UDP traffic on port 53 to the CentOS 8 guest and enabled port forwarding on the Mac and configured the guest to use a static ip address using Fusion's network Autodetect feature, This allows the guest access to the host network.
I can ssh to the guest fine.
However if I query DNS I can see the query arrives on the guest with tcpdump
listening on ens33, link-type EN10MB (Ethernet), capture size 262144 bytes
16:35:32.588694 IP 192.168.178.199.52983 > 192.168.178.254.53: 9629+ A? google.com. (28)
16:35:37.589861 IP 192.168.178.199.52983 > 192.168.178.254.53: 9629+ A? google.com. (28)
but the guest does not respond.
If I login to the guest it works fine:
16:36:51.095771 IP 192.168.178.254.53304 > 9.9.9.9.53: 25066+ A? google.com. (28)
16:36:51.110600 IP 9.9.9.9.53 > 192.168.178.254.53304: 25066 1/0/0 A 142.250.179.206 (44)
16:36:51.113013 IP 192.168.178.254.57172 > 9.9.9.9.53: 60826+ AAAA? google.com. (28)
16:36:51.145632 IP 9.9.9.9.53 > 192.168.178.254.57172: 60826 1/0/0 AAAA 2a00:1450:400e:80f::200e (56)