Why would it forward?? Its default mode is resolve… Did you put it into forwarding mode?? That is a different problem then answer your queries for local stuff..
Here is the part you need to understand about the query method of windows
3. "the DNS Client service sends the query to all DNS servers on all adapters that are still under consideration and waits another two seconds for a response."
"if it has not received a response from any DNS server on a specified adapter, then for the next 30 seconds, the DNS Client service responds to all queries destined for servers on that adapter with a timeout and does not query those servers"
"If at any point the DNS Client service receives a negative response from a server, it removes every server on that adapter from consideration during this search."
Also you need to read this which gives better examples of where a query might go
http://blogs.technet.com/b/stdqry/archive/2011/12/15/dns-clients-and-timeouts-part-2.aspx
The client tries to resolve a name and DNS1 times-out but DNS2 answers. The next query that this client tries to resolve is going to go DNS2 first before being retried in DNS1, because DNS2 would have a higher priority than DNS1.
Configure the clients to point to more than one DNS server for fault-tolerance. Do not list more than one server to overcome disjoint DNS namespaces, and if you are going to do so, understand the risks and consequences.
Why don't you watch what it queries via a sniff!! You can not be sure that its actually doing a query to the one listed first… You just can not... And using 2 different servers, 1 local that resolves local stuff and one that does not resolve local stuff is going to cause you pain.. That is disjointed namespace..
As to unbound not resolving public stuff or local have to do with you doing queries to 4.2.2.1???? How does that show anyone that unbound is not working???
Out of the box, and even from your screenshot unbound is not in forwarder mode, its a resolver.. So its going to work its way down from roots to find the authoritative server for what your looking for so it can query it directly for the record you looking for.. If you have outbound 53 blocked to the internet other than to specific nameservers or address space, then the resolver is not going to work.. If your isp forces you to use their dns then resolver mode is not going to work..
Why do you sniff on your wan where unbound will do its queries when you ask it for something so you can see what is happening..