PiHole Suddenly stopped working after throwing a RATE_LIMIT and DNSMASQ_WARN

Those are both normal. The first section of log shows that Pi-hole is blocking blocked domains when they are requested using IPv6 on your internal network, and that you don't have IPv6 set up for external access (commonly caused by the ISP not supporting it). The second section is normal for some OSs – see this comment from @rdwebdesign.

You mention your wife being a doctor – did the requests for that nz domain come from her laptop? If so, I suspect she has a VPN installed on it to connect it to her work network. It may be that, for whatever reason, the VPN was offline and so Pi-hole was receiving requests for this domain instead, with her laptop trying over and over unsuccessfully.

The constant trying could trigger a rate limit warning, and since it's a non-local network you get a DNSMASQ warning for that too (if that's what it was for).

There's no reason why any of that would kill your internet access, but if instead you turn it around and assume your internet went off for some other reason, that would trigger the VPN events above and lead to those messages appearing, making it seem like they were a cause rather than a symptom.

Above you give your Pi-hole IP address as 198.168.178.10. It should be 192 not 198. Is that just a typo in this forum or have you used that address in a config somewhere, eg a DNS setting? If so, that might explain a computer being unable to get back online since it wouldn't be able to reach a DNS server to resolve anything.

Assuming your Pi-hole is at 192.168.178.10 what do the commands below give when ran from a machine that isn't the Pi-hole itself or your wife's computer?

nslookup pi.hole
nslookup flurry.com
nslookup flurry.com 192.168.178.10
ping -c 3 1.1.1.1
ping -c 3 google.com
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