Here's how you fix the issue:

This is a bug that's fixed in upstream NetworkManager. That said, the
various GUI tools which write the NetworkManager config files haven't
been updated to ensure that DNS leaks are prevented when using vpn
connections.

To prevent system dns from appearing and being used in /etc/resolv.conf
when using a VPN, edit your  vpn configuration (i.e. the file in
/etc/NetworkManager/system-connections/<vpn name>) so it's something
like this:

[ipv4]
dns=<vpn dns server ip address>;
ignore-auto-dns=true
method=auto
dns-priority=-1

the negative dns-priority means only this dns server will be used.
Then reload the config file:
sudo nmcli c reload <vpn name>

and toggle the vpn.

/etc/resolv.conf should now only include the one dns ip address defined
in the config file.

References:
https://developer.gnome.org/NetworkManager/stable/settings-ipv4.html
https://bugzilla.gnome.org/show_bug.cgi?id=758772

** Bug watch added: GNOME Bug Tracker #758772
   https://bugzilla.gnome.org/show_bug.cgi?id=758772

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You received this bug notification because you are a member of Desktop
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:
  Confirmed
Status in openvpn package in Ubuntu:
  Confirmed

Bug description:
  [Triage Notes]

  Apparently fixed on Ubuntu 17.04, nobody caring about LTS versions.
  Please see wall of text on comment 50 for a long excuse.

  [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

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