dnsmasq works as a DNS relay, and this means it sets things up a bit unusually. The DNS servers are saved in /tmp/resolv.conf.auto - and dnsmasp then makes DNS avaiable on the local machine (port 53). This is why /etc/resolv.conf points to local host, it says use the localhost (router) for DNS.
So question is what is happening with you. You should have something in the logs like:
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: reading /tmp/resolv.conf.auto
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: using local addresses only for domain test
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: using local addresses only for domain onion
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: using local addresses only for domain localhost
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: using local addresses only for domain local
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: using local addresses only for domain invalid
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: using local addresses only for domain bind
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: using local addresses only for domain lan
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: using nameserver 212.159.6.9#53
Sun Jan 19 04:03:39 2020 daemon.info dnsmasq[1874]: using nameserver 212.159.6.10#53