>It's absolutely not forwarding. It's resolving recursively. I'm using unbound with pfsense and I'm suspecting there is something wrong with it. >When I point to MS DNS server or 9.9.9.9, it's resolving correctly.
The issue has been resolved. Just in case someone finds the solution useful, pfsense by default has rebind protection enabled which disables DNS responses using rfc1918. So disabling rebinding DNS protection in pfsense is the solution. Thanks for the help that pointed me in the right direction.
