Pi-hole Install works, Unbound Install works but no internet access

Expected Behaviour:

Any help is much appreciated, I'm a bit of a novice with command lines.
I am using container manager on Synology DSM 7.2 running both Pi-hole and Unbound. Both are up and running and I can see from the tail pihole.log that Pi-hole is doing its thing.
After installing and running Unbound, I expected to be able to go into the Pi-hole settings, DNS and remove the Cloudflare Upstream DNS servers and add Custom1 pointing to Unbound by using: 127.0.0.1#5335

Actual Behaviour:

When 127.0.0.1#5335 is used as the only DNS server, SRVFail appears in the tail pihole.log and internet connectivity and browsing is lost. I have tried using the Synology IP#5335 but the same result persists.
Setting back to Cloudflare DNS and removing my custom DNS entry resolves the SRVFails shown in the log and normal browsing is restored on client.
Looking through the debug log, the only thing that caught my attention below is the PIHOLE_INTERFACE=eth0. My Synology is using 2x NICs bonded, shown as bond0.

[ DIAGNOSING ]: Setup variables
INSTALL_WEB_INTERFACE=true
PIHOLE_INTERFACE=eth0
DNSMASQ_LISTENING=local
QUERY_LOGGING=true
BLOCKING_ENABLED=true
DNS_FQDN_REQUIRED=false
DNS_BOGUS_PRIV=false
DNSSEC=false
REV_SERVER=false
WEBUIBOXEDLAYOUT=boxed
WEBTHEME=default-light
PIHOLE_DNS_1=1.1.1.1
PIHOLE_DNS_2=1.0.0.1

Debug Token:

Your debug token is: https://tricorder.pi-hole.net/NQ0brw78/

Are Pi-hole and unbound running in the same docker container? If not, you cannot use the loopback IP in the Pi-hole container and reach unbound in a separate container.

You said you are using container manager, so I don't expect you have executed a docker run command or used a compose file to start the container(s).

In addition to jfb question, can you also post details about your docker container (or containers if you are running Pi-hole and Unbound in separate containers):

  • which image(s) and tag did you use?
  • are you using Environment Variables for Pi-hole? Which ones?
  • which network mode the container(s) is(are) using? host? bridge? macvlan?
  • are you using volumes?

This can be changed adding an environment variable to Pi-hole container: INTERFACE=bond0

I have 2 containers (I think, sorry am new to this)

This is the network config:

  • which image(s) and tag did you use? - Latest directly from Container Manager Registry
  • are you using Environment Variables for Pi-hole? Which ones?
    docker run -d --name=pihole
    -e WEB_PORT=8080
    -e WEBPASSWORD=@@@@@
    -e WEB_BIND_ADDR=10.192.24.250
    -e TZ=Asia/Nicosia
    -e DNSMASQ_USER=root
    -e DNSMASQ_LISTENING=local
    -v /volume1/docker/pihole/dnsmasq.d:/etc/dnsmasq.d
    -v /volume1/docker/pihole/pihole:/etc/pihole
    --net=host
    --restart always
    pihole/pihole

For Unbound, I used: sudo docker run --name unbound -d -p 5335:53/udp -p 5335:53/tcp
--restart=always mvance/unbound:latest

Pihole environment variables:

Unbound environment variables:

  • which network mode the container(s) is(are) using? host? bridge? macvlan? - See screenshot
  • are you using volumes? - Yes

Appreciate your guidance on this as I'm new to command line, containers etc. What would be the best or easiest way to get Unbound running as expected.

Update:
Looking closer at the original network setup in container manager, I decided to create a new bridge with a manual IP configuration for my subnet. I added Unbound to it and removed from the original bridge network. (screenshot below)

From the Pi-hole GUI DNS section, I removed the 2 Cloudflare DNS servers and added my own custom1 - 10.192.24.250#5335 which is the Synology IP and saved.
Going back to the pihole.log, there are no more SERVERFAIL errors and seems to be working as expected. (Pihole.log below)

I configured my client to use 10.192.24.250 for both DNS server settings, however this causes browsing issues and no page can load.
When I change the DNS servers on my client to use my IP 10.192.24.250 as primary and Cloudflare's 1.0.0.1 as secondary, everything works again, presumably as Cloudflare is doing the resolving.

Any thoughts from here?

Pihole.log Output:
Dec 1 14:20:11: query[AAAA] edge5.akamai01.world from 10.192.24.9
Dec 1 14:20:11: forwarded edge5.akamai01.world to 10.192.24.250#5335
Dec 1 14:20:15: query[A] logs.netflix.com from 10.192.24.8
Dec 1 14:20:15: gravity blocked logs.netflix.com is 0.0.0.0
Dec 1 14:20:15: query[A] logs.netflix.com from 10.192.24.8
Dec 1 14:20:15: gravity blocked logs.netflix.com is 0.0.0.0
Dec 1 14:20:17: query[A] logs.netflix.com from 10.192.24.8
Dec 1 14:20:17: gravity blocked logs.netflix.com is 0.0.0.0
Dec 1 14:20:17: query[A] logs.netflix.com from 10.192.24.8
Dec 1 14:20:17: gravity blocked logs.netflix.com is 0.0.0.0
Dec 1 14:20:17: query[A] logs.netflix.com from 10.192.24.8
Dec 1 14:20:17: gravity blocked logs.netflix.com is 0.0.0.0
Dec 1 14:20:22: query[A] edge5.akamai01.world from 10.192.24.9
Dec 1 14:20:22: forwarded edge5.akamai01.world to 10.192.24.250#5335
Dec 1 14:20:22: query[AAAA] edge5.akamai01.world from 10.192.24.9
Dec 1 14:20:22: forwarded edge5.akamai01.world to 10.192.24.250#5335
Dec 1 14:20:31: query[A] logs.netflix.com from 10.192.24.8
Dec 1 14:20:31: gravity blocked logs.netflix.com is 0.0.0.0
Dec 1 14:20:32: query[A] edge5.akamai01.world from 10.192.24.9
Dec 1 14:20:32: forwarded edge5.akamai01.world to 10.192.24.250#5335
Dec 1 14:20:32: query[AAAA] edge5.akamai01.world from 10.192.24.9
Dec 1 14:20:32: forwarded edge5.akamai01.world to 10.192.24.250#5335
Dec 1 14:20:33: query[A] logs.netflix.com from 10.192.24.8

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