@viragomann Awesome answer! I really appreciate you taking the time and attention to detail, to go through and answer each question. Very helpful!
Had thought of and actually made groups after posting, but the time limit for editing had run out when I tried to do so. Makes sense.
Q6: Apologize, I wasn't clear, I meant referencing the picture. Source any and inverted on LAN address. Should have specified.
Q2: What's been interesting in practice, is although all are on the same rule redirected to 127.0.0.1, some worked and redirected to 127.0.0.1 and others redirected to the static ip on the interface. Therefore those did not work with the firewall wall pass rule specifically for port 53 to 127.0.0.1. I.e. No DNS until 127.0.0.1 was changed to xyz interface address in the pass rule.
Prior to changing the pass rule, the interface static IP could be seen in the firewall logs as -p 53 blocked (from a lower separate block rule to 'this firewall') on many of the interfaces, so had to change the pass rule from single host/alias --> 127.0.0.1 to xyz 'address'. Then once change to just the xyz interface address, dns resumed and all worked again. No changes to the lower block rule.
Any ideas as to why the explicit redirect to 127.0.0.1 would lead to that result on some interfaces, but others redirected specifically to the static ip of the interface? Anything to do with resolver functionality?
edit: When I went back and didn't have it as an inverted rule, but rather * (any) for destination, it redirected to 127.0.0.1 as expected. I'll not delete and leave the above though, for anyone that might experience the same with the inverted rule.
Thank you again for your time and great detailed answer above!