Pi-hole ignoring dns servers defined in docker-compose.yml

General Beta 5.0
1

Problem with Beta 5.0:
Pi-hole ignores the upstream dns servers I configured using docker-compose.
On the startup log I can see

Docker DNS variables not used
Existing DNS servers used (8.8.8.8 & 8.8.4.4)

My docker-compose.yml file:

services:
  pihole:
    container_name: pihole
    mac_address: d0:ca:ab:cd:ef:01
    image: pihole/pihole:beta-v5.0
    networks: 
      mymacvlan: 
        ipv4_address: 192.168.1.3
    domainname: **omissis**
    hostname: pihole
    environment:
      TZ: 'Europe/Rome'
      WEBPASSWORD: '**omissis**'
      ServerIP: '192.168.1.3'
      VIRTUAL_HOST: 'pihole.**omissis**'
    # Volumes store your data between container upgrades
    volumes:
       - './mounts/pihole-config/pihole/:/etc/pihole/'
       - './mounts/pihole-config/dnsmasq/:/etc/dnsmasq.d/'
    dns:
      - 127.0.0.1
      - 1.1.1.1
      - 1.0.0.1
    cap_add:
      - NET_ADMIN
    restart: unless-stopped
networks:
  mymacvlan:
    driver: macvlan
    driver_opts:
      parent: eth0
    ipam:
      config:
        - subnet: 192.168.1.0/24
          gateway: 192.168.1.1

Debug Token:
https://tricorder.pi-hole.net/x6lwvozj90

3

the dns: block has (system) DNS but you ALSO need upstream servers for Pi-hole, which are set by the envrionment.

    environment:
      DNS1: 1.1.1.1
      DNS2: 1.0.0.1

see the full environment variable list for more details : GitHub - pi-hole/docker-pi-hole: Pi-hole in a docker container