SOLVED - I figured out my problem. It was caused by this setting below (Static ARP under the DHCP Server configuration for the interface), which I had enabled on the interface because I interpreted it incorrectly. It essentially took precedence over any and all allow rules configured for the OPT2 interface, and prevented any host without a statically assigned DHCP address from communicating with the interface even though the host received the dynamic DHCP assignment from the OPT2 interface. I hope this saves other folks time and headache.
Screen Shot 2019-11-06 at 9.46.34 PM.png
As explained in docs.netgate[.]comScreen Shot 2019-11-06 at 10.40.04 PM.png
I realized that I do not need to add 192.168.0.x since my WAN interface is 192.168.0.1 and /32 was incorrect too. I have removed that. I can see the route in the table but still the ping to google.com or 220.127.116.11 or 192.168.0.1 from a VM(192.168.1.100) connected to pfsense is very random. how can I troubleshoot that?
edit: do I have to reboot each time I save anything? that seems to do the trick
With IPAliases you can usually use either /32 or the correct subnet size. The important thing is you have at least one IP defined on the interface with the correct subnet in order to add the correct routing.