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If you are Experiencing issues with a Pi-hole install that has non-standard elements (e.g you are using nginx instead of lighttpd, or there is some other aspect of your install that is customised) - please use the Community Help category.
Expected Behaviour:
PiHole installed on Raspberry Pi 3 used to work just fine and was blocking all ads.
I suspect your router is providing the DNS and DHCP. You need to either disable DHCP on the router and enable pihole's DHCP or edit the DNS server settings in the router to be 192.168.0.106, which would then show up on the Windows machine as that address. Or, manually set the DNS on the Windows machine or any other machine you want to ad block to that address.