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i also have the same issue.. unbound is green and running but dns is not working.
i am also using nextdns.. seems to happen every 2 days or so..
i am going to switch to 1.1.1.1 and 8.8.8.8 to see if that makes any difference..

Also, not sure if it is of any help, I have Unbound set up to be forwarding queries to NextDNS over TLS.

What happens when you disable DoT and/or forwarding?
In my setup, forwarding works, but unbound stops working as soon as I enable DNS over TLS.

It just happened to me again.. On 21.1.7_1 now.. And I have DNS over TLS disabled..
Restarting unbound seems to fix it for a while..

I have a similar issue.. but I am still on 21.1.6
unbound seems to lock up and doesnt respond to dns queries. but in my case it "only" happens every few days. I was hoping that 21.1.7 would fix this...