OK, that is not required indeed. For some unknown reasons adding that option helped me with Cloudflare provider, but most likely it was a side effect or a misbehavior of the particular Cloudflare server. My recent clean test shows no issues besides one below.
Currently the bootstrap_dns keyword is used in the lua scripts :
Sorry to revive this dead thread but it is the first result in Google... So the package mentioned many times luci-app-https_dns_proxy doesn't seem to exist anymore. Did it change names or something?
Yep it was hyphens not underscores that worked.
I also was not seeing the GUI in LUCI. It's under Services> DNS over HTTPS proxy. Apparently I was more tired than I thought.
The option noresolv doesn't affect caching, because Dnsmasq is still your primary resolver and it sends DNS queries to https-dns-proxy, which acts as a secondary resolver.