I have exactly the same problem as mentioned in the comment #22 after
upgrading from 16.04 to 16.10. I commented out "dns=dnsmasq" in
/etc/NetworkManager/NetworkManager.conf and now it is working.

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https://bugs.launchpad.net/bugs/1013646

Title:
  VPN connected but private-network names cannot be resolved; bypassing
  the local forwarding nameserver fixes it

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