This probably have nothing to do with Wireguard itself, probably more with docker networking, MAC-VLAN and docker routing...
I have a Piehole in docker setup using macvlan so that it have its on IP on my LAN, this works just fine on my local network with local clients.
I have a Wireguard Server setup in docker and it works just fine when using PEERDNS=auto, if I change this to PEERDNS=IP.Of.Piehole nameresolution stops.
I am willing to change whatever and also, my Piehole was manually setup a long time ago, so far ago that I think I manually setup the stuff in Portainer using technodad method and not a stack. I'd rather get this stuff done right and have it as a stack since its much simpler that way.
But, to do that right and I need to understand why my current setup does not work, and then what I need to do to get this done right.