The bug (in the network-manager package) is that /etc/dnsmasq.d/network-
manager contains
except-interface=lo
despite the fact that network-manager was changed not to listen on lo's
IP address (127.0.0.1) any more. Here's the changelog entry announcing
this change.
network-manager
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https://bugs.launchpad.net/bugs/1042275
Title:
dnsmasq updating resolvconf when it's not configured to do DNS
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The issue seems to be that with its current configuration (and including
bind-interfaces, and except-interface=lo), dnsmasq tries to update
DNS via resolvconf which adds a file under
/run/resolvconf/interface/lo.dnsmasq.
That file contains 'nameserver 127.0.0.1', which is absolutely incorrect
