Ah, I understand. In #959037 various ways of resolving (no pun intended) the conflict between standalone dnsmasq and nm-dnsmasq have been discussed and in recent comments we were working on the idea of moving nm-dnsmasq to another loopback address, say 127.0.0.2, which allows standalone dnsmasq to run alongside nm-dnsmasq in bind-interfaces mode without "except- interface=lo"; thus standalone dnsmasq can provide name and other services on lo at 127.0.0.1 as well as on external interfaces.
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