Your debug log shows that Pi-Hole is working properly.
What is the status you are seeing on the dashboard for that query? Blocked, OK, etc...
What is the output of that command? You would expect it go to the router, since this command output doesn't show the DNS request. Here is an example from a Mac using a Pi-Hole as DNS:
traceroute google.com
traceroute to google.com (216.58.192.206), 64 hops max, 52 byte packets
1 router (192.168.0.1) 3.408 ms 2.634 ms 2.498 ms
2 10.105.192.1 (10.105.192.1) 9.865 ms 9.702 ms 11.315 ms
3 172.27.14.48 (172.27.14.48) 11.361 ms 13.384 ms 10.496 ms
4 172.27.14.34 (172.27.14.34) 9.149 ms 11.543 ms 10.123 ms
5 elmwbbrj01-ae1.0.rd.no.cox.net (68.1.0.192) 20.014 ms
chgobprj01-ae0.0.rd.ch.cox.net (68.1.4.42) 20.683 ms 19.716 ms
6 68.105.30.214 (68.105.30.214) 17.097 ms 20.714 ms 22.533 ms
7 * * 108.170.243.193 (108.170.243.193) 20.340 ms
8 216.239.42.107 (216.239.42.107) 22.300 ms 21.790 ms
72.14.232.186 (72.14.232.186) 23.615 ms
9 ord30s25-in-f206.1e100.net (216.58.192.206) 20.487 ms
108.170.244.15 (108.170.244.15) 22.698 ms
ord30s25-in-f206.1e100.net (216.58.192.206) 21.644 ms