bill1228 wrote:@starcms
Just to keep me honest. When I setup LEDE I configure the DNS servers to be used on the LAN interface. I believe this is correct. If not how should be be configured. Was trying to think of things I could be mucking up and that was one of them. Does get a little confusing as you can set DNS servers on the WAN interface as well.
Have not found the dnsmasq version in dd-wrt yet by the way.
There isn't really an option in LuCi on what interface to configure the DNS servers to (I don't think). If you don't change any major default settings, you should be fine. The default DNS servers come from your ISP, so that would be coming via WAN, if that is what you are asking.
Updated/Corrected:
@ all those having problems recently described about the dns server being slow, not resolving right away, etc, please read this
However, I just found something comparing the dhcp config file (/etc/config/dhcp; which controls dnsmasq/DNS as well as dhcp) that is currently included with LEDE (and @david's build) vs. mine and one thing caught my eye:
config dnsmasq
option nonwildcard '0'
My config file has that set to 0. The default now has it set to 1. Try setting it to 0 and rebooting and see if that helps. I bet it will!!! 
This would explain why only some are experiencing the issue. Because originally, the default setting was 0. Those of us who kept upgrading and saving/restoring our config, kept it that way. However, it was changed in the past few months to be set to 1 by default so anyone with a fresh install started experiencing the issue.
Addition: https://wiki.openwrt.org/doc/uci/dhcp also shows the default of nonwildcard to be 0. I don't know when the entry for nonwildcard to be 1 was added (some stupid commit probably in the last 3-4 months or so), but I bet that's your issue.
Also compare to the config file in DD-WRT and see what differences you see. I bet DD-WRT also has it set to 0 and that is why there is no issue with DD-WRT.
This also explains why the issue was not present in official LEDE 17.01.0, but is in official LEDE 17.01.2 (and in the snapshot/trunk branch). There must have been a commit which changed the value in the config file of nonwildcard from 0 to 1 for some idiotic reason sometime after LEDE 17.01.0.
(Last edited by starcms on 6 Aug 2017, 05:08)