The same for me today. After upgrading to 16.10 I had no connection via
VPN. Deleting the line "dns=dnsmasq" from
/etc/NetworkManager/Networkmanager.conf followed by 'sudo service
NetworkManager restart" did the trick for me. The connection was very
slow though, but I don't know if that is related to the problem. I also
don't know what the "penalty" is for removing the dns=dnsmasq line.

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https://bugs.launchpad.net/bugs/1624317

Title:
  systemd-resolved breaks VPN with split-horizon DNS

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