GitHub user fnavidan added a comment to the discussion: VM instances get VR's 
IP as DNS server but cannot resolve through VR

I have upgraded to 4.20.2 successfully, destroyed all system VMs and virtual 
router, and restarted the guest network with cleanup. All system VMs and VR is 
now running version 4.20.2 but I am still facing the same issue. Below is 
content of /etc/dnsmasq.d/cloud.conf on new VR:

```
bind-interfaces
listen-address=127.0.0.1,149.50.127.132,5.181.188.60
dhcp-range=set:interface-eth0-0,149.50.127.132,static
dhcp-option=tag:interface-eth0-0,15,cloud.internal
dhcp-option=tag:interface-eth0-0,6,8.8.8.8,8.8.4.4
dhcp-option=tag:interface-eth0-0,3,149.50.127.129
dhcp-option=eth0,26,1500
dhcp-option=tag:interface-eth0-0,1,255.255.255.192
dhcp-range=set:interface-eth0-1,5.181.188.60,static
dhcp-option=tag:interface-eth0-1,15,cloud.internal
dhcp-option=tag:interface-eth0-1,6,8.8.8.8,8.8.4.4
dhcp-option=tag:interface-eth0-1,3,5.181.188.49
dhcp-option=tag:interface-eth0-1,1,255.255.255.240
```

I have tested DNS relay functionality locally from VR and it doesn't work:

```
root@r-349-VM:~# dig @127.0.0.1 google.com
;; communications error to 127.0.0.1#53: connection refused
;; communications error to 127.0.0.1#53: connection refused
;; communications error to 127.0.0.1#53: connection refused

; <<>> DiG 9.18.33-1~deb12u2-Debian <<>> @127.0.0.1 google.com
; (1 server found)
;; global options: +cmd
;; no servers could be reached
```

GitHub link: 
https://github.com/apache/cloudstack/discussions/11749#discussioncomment-14797172

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