Why is my gateway listed as an upstream server?

Yes, if NetworkManager is your OS network management tool.

Since your router supports DoH, you could also point Pi-hole to use your router as upstream.

In that case, you wouldn't need to use Pi-hole's NTP services in the way I've suggested. Just leave them turned off.

Instead of /etc/hosts/, you should probably use a host-record option, as that would give you control over the shadowed DNS record's TTL, e.g. to 3600, suggesting clients to refresh that domain once an hour.
You can add a host-record configuration line to Pi-hole via misc.dnsmasq_lines under Settings | All settings » Miscellaneous.

Shadowing public records involves the risk of using wrong IP addresses if public resolution changes, of mixing shadowed and public resolution if you were to forget to define A as well as AAAA records, and inability of using HTTPS connections to the shadowed domain.

I wouldn't generally recommend to shadow public DNS records for CNAME targets, but if you are willing to take the risk, its an option.

My gateway is no longer listed as an upstream server. :smiling_face_with_sunglasses: