@amer1canparatrooper:
Also, after setting the second LAN adapter (linux) to pfsense LAN address, I am still unable to reach the Internet.
It is not clear to me what you mean by the above sentence. Did you set a second network adapter in the Linux machine to have IP address 192.168.1.2? If so, that probably explains what you are seeing in the second ping of your screenshot. I presume the screenshot shows activity on that Linux VM. The ping of 192.168.1.2 responds since 192.168.1.2 is a local address. The ping of 10.0.1.105 gets "Destination host unreachable" since the local machine doesn't know how to get to 10.0.1.105. Your Linux VM needs a default route AND a distinct IP address, apparently on the 192.168.1.x/?? subnet.
Also, to answer your question, I didn't set pfsense to be a DHCP server.
All my other virtual machines are set as 'bridged' adapters, which work fine since they receive IP addresses from my router. I have just recently set linux's LAN adapter to intnet as you suggested, which brought about a successful LAN ping.
I'm still puzzled.
Thanks for any further suggestions.