Yeah the link is fine.

But more interesting is that dnsmasq only seems to "care" about reading
from /etc/resolv.conf, but ignored your setup in
/run/systemd/resolve/resolv.conf.

In my working case I had the provider DNS in /etc/resolv.conf but you
only had it in /run/systemd/resolve/resolv.conf (I have it there as
well, but as I said -also- in /etc/resolv.conf).

Due to that your dnsmasq doesn't know about the "uplink-dns" and fail-loops on 
the systemd-resolvd.
In that sense it doesn't do it wrong, it reads /etc/resolv.conf (as is its 
default in /etc/dnsmasq.conf and thereby only picks up the systemd-resolved ip, 
but not the uplink).

We have to understand how/why your /etc/resolv.conf is the way it is
(without the uplink dns).

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https://bugs.launchpad.net/bugs/1688364

Title:
  Non existent host causes 100% cpu utilization by systemd-resolved and
  dnsmasq

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