On Ubuntu 17.04, I could get this working with the following steps:

1. rm -rf /etc/resolv.conf

This will tell systemd-resolved not to manage resolve.conf file. Simply
disabling systemd-resolved service does not work because of some other
depending service is enabled and starts systemd-resolved anyway.

2. Add this line to the [main] section of 
/etc/NetworkManager/NetworkManager.conf
dns=dnsmasq

Appeartently network manager manages its own instance of dnsmasq so if
you have dnsmasq package installed, you should make sure the dnsmasq
service is not enabled otherwise this will not work. You can also
install dnsmasq-base package instead, which does not include a systemd
unit.

A reboot probably is also necessary, I did these via ansible playbooks
to create bootable images so this was the case for me. Restarting
network manager service might also work.

Hope this helps, best

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You received this bug notification because you are a member of Ubuntu
Touch seeded packages, which is subscribed to network-manager in Ubuntu.
https://bugs.launchpad.net/bugs/1211110

Title:
  network manager openvpn dns push data not updating system DNS
  addresses

Status in network-manager package in Ubuntu:
  Expired
Status in openvpn package in Ubuntu:
  Expired

Bug description:
  [Triage Notes]

  This bug can no longer make progress. Please see comment 50 for
  details and further instructions.

  [Original Description]

  When IPv4 Method is set to Automatic VPN, DNS address recieved from
  OpenVPN server do not update resolv.conf.

  This can be achieved when using a standard openvpn config file by
  adding the lines:

  script-security 2
  up /etc/openvpn/update-resolv-conf
  down /etc/openvpn/update-resolv-conf

  In Network-manager there seems to be no option to run connection
  specific scripts and the DNS data from the server is ignored.

  Ubuntu 13.04
  Network-manager 0.9.8.0-0ubuntu6

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/network-manager/+bug/1211110/+subscriptions

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