BIND DNS works for client, however netgate can't resolve any names

[linq]

Disabled DNS Forwarder and DNS Resolver as per instruction of configuring BIND.
BIND is setup and is working, set it to listen to all local interfaces and loopback. Client lookups work and resolves internal and external addresses using BIND DNS.

In System - General Setup I've configured DNS Servers and set DNS Servers to 1.1.1.2. Not sure if this is correct.

When running Diagnostics - DNS Lookup I get no answer. Similar issue is seen in System - Dashboard where the version check can't resolve.

What else do I need to check and what can be missing?

[linq]

For future reference, problem was caused by a misconfigured setting in General Setup -> DNS Server Settings - DNS Resolution Behaviour.
Setting changed to Use Local DNS, Fall back to remote DNS Servers