It works now for me, I'm not sure I remember what I changed.I have a NAT rule that redirects TCP/UDP 53 to 127.0.0.1 and one for ::1 and now the DNS lookups are corrected redirected and correctly answered, with source IP "faked".
There may be hardcoded or "misconfigured" devices where a block will lead to disfunction. I also don't want to configure every device of eg family members, a new device should simply work.
Well, the reasoning is:if you are blocking port 53 outbound, it means you expect some devices to attempt to use external DNS.If a device is using and external DNS, it's either malicious or misconfigured.ergo, you are already planning for misconfigured devicesHence redirecting is the logical thing to do.
Additionally, I suspect some devices such as smart TVs to fallback to DNS over HTTPS/TLS/QUIC if they notice DNS to outside is being blocked. But I have never observed it, it's pure conjecture.