It looks like the problem was what @Bucking_Horn said, and your system time was wrong. This turned out to be because NTP wasn't enabled and your enabling of it fixed the problem and this allowed Unbound to work correctly.
If you installed it from the Pi-hole guide (here) then that sets it up to fully resolve domains name locally. In this mode it's called a "recursive resolver" because it steps through the domain name one piece at a time and resolves each piece.
This is the same as what an external name server like Google would be doing, only you're doing it yourself directly now. It's much better for privacy, and Pi-hole and Unbound in recursive mode work really well together. The earlier online guide explains the difference between sending your queries to an external server vs resolving them yourself.
You can confirm it by looking at your dig output. Where it says flags you have ra (recursion available). That's Unbound telling your dig command that it's configured as a recursive resolver.
[ Edit - the above is not correct because the ra flag would also be picked up from an external upstream resolver if Unbound was simply forwarding requests to that resolver ]
No need to be sorry, you're very welcome; these kind of questions and answers also help others who find Pi-hole and this forum later on.