Your new debug log also shows your router is using itself as DNS server.
Look at the dns-server: 192.168.1.1 line:
*** [ DIAGNOSING ]: Discovering active DHCP servers (takes 10 seconds)
Scanning all your interfaces for DHCP servers
Timeout: 10 seconds
* Received 300 bytes from eth0:192.168.1.1
Offered IP address: 192.168.1.158
Server IP address: 192.168.1.1
Relay-agent IP address: N/A
BOOTP server: (empty)
BOOTP file: (empty)
DHCP options:
Message type: DHCPOFFER (2)
server-identifier: 192.168.1.1
lease-time: 43200 ( 12h )
renewal-time: 21600 ( 6h )
rebinding-time: 37800 ( 10h 30m )
netmask: 255.255.255.0
broadcast: 192.168.1.255
router: 192.168.1.1
dns-server: 192.168.1.1
domain-name: "lan"
--- end of options ---
Edit:
If you are sure you edited the DNS on the correct place, maybe you need to renew the DHCP lease for you Pi-hole device (current lease time is 12h).