Raspberry pi + pihole help please?

Hi, I'm am using a raspberry pi as an ad blocker (pihole)... I have set the dns address to the pi in "network / dns forwardings"
also added:
/etc/dnsmasq.conf
dhcp-option=6,ipaddress1 (address of the pi)

But still the pi is logging the router AND the device as the originating source... any ideas please ?
Using this strategy with Gargoyle removed the router from the sources... have I done something wrong ?

check /etc/resolv.conf... maybe you created a loop of queries. the "network / dns forwardings" config was on another router?, that is the problem then...

resolv.conf has :
search lan
nameserver 127.0.0.1

Im not sure what I should be looking for to be honest... pretty new to all this.. All im after is for the DNS to be handled by the pi and the router ip shouldnt feature in the DNS log on the pi.