Pihole with unbound shows status: SERVFAIL on dig pi-hole.net @127.0.0.1 -p 5335....Please Help fix this problem

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Dnsmasq: reply error is SERVFAIL

The issue I am facing: I've been running a raspberry pi for almost a year now, with unbound. Yesterday I did an apt update/upgrade and things were still working fine, but then this morning, DNS started failing and returning SERVFAIL. I spent about two hours following forums with similar issues, double checking configurations, re-installing packages, updating pihole, nothing solved it. But then when I turned on level 4 logging on unbound, it magically started working! I then turned level 4 l…