** Merge proposal linked:
   
https://code.launchpad.net/~paelzer/ubuntu/+source/dnsmasq/+git/dnsmasq/+merge/332888

** Merge proposal linked:
   
https://code.launchpad.net/~paelzer/ubuntu/+source/dnsmasq/+git/dnsmasq/+merge/332889

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https://bugs.launchpad.net/bugs/1726017

Title:
  dnsmasq prematurely returns REFUSED, breaking resolver

Status in dnsmasq package in Ubuntu:
  Fix Released
Status in dnsmasq source package in Xenial:
  In Progress
Status in dnsmasq source package in Zesty:
  In Progress

Bug description:
  Seen with dnsmasq 2.75-1ubuntu0.16.04.3, after Trusty->Xenial update.

  In my local network, I have two DNS servers; 192.168.1.1 is the local
  DHCP/DNS server configured to reply to queries inside the local
  network, and 192.168.1.4 is the forwarder in my DSL Router,
  responsible to answer queries about the outside world. THe DHCP server
  returns these in the order 192.168.1.4,192.168.1.1. The internal
  server replies REFUSED to queries about external domains.

  This configuration has worked well with Ubuntu 14.04 and other Linux
  Distros (using Fedora and OpenSUSE internally here), as well as
  various other OSes.

  It does not work with Ubuntu 16.04. NetworkManager's dnsmasq instance
  pushes the REFUSED reply from 192.168.1.1 to applications and ignores
  the successful reply from 2.168.1.4. This causes all DNS queries to
  external servers to fail.

  I believe this is fixed in dnsmasq 2.76 and related to

  http://lists.thekelleys.org.uk/pipermail/dnsmasq-
  discuss/2016q1/010263.html

  
http://thekelleys.org.uk/gitweb/?p=dnsmasq.git;a=commitdiff;h=68f6312d4bae30b78daafcd6f51dc441b8685b1e
  http://thekelleys.org.uk/gitweb/?p=dnsmasq.git;a=object;h=4ace25c5d6

  According to these sources, the bug was introduced with 
  
http://thekelleys.org.uk/gitweb/?p=dnsmasq.git;a=object;h=51967f9807665dae403f1497b827165c5fa1084b

  In my local setup at least, I can work around the problem by using the
  "strict-order" option to dnsmasq.

  echo strict-order >/etc/NetworkManager/dnsmasq.d/order.conf

  But that's not a general solution. If dnsmasq has several forwarders,
  and some return SERVFAIL or REFUSED and others return SUCCESS, the
  successful answer should be returned to clients, independent of the
  strict-order setting.

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