Trying to understand why the dnsmasq is registered in /etc/resolv.conf
at all, I find that it's listed in /etc/resolvconf/resolv.conf.d/tail.
So 192.168.122.1 being listed as a global DNS server is a result of
local configuration, which means this problem is at least partly self-
inflicted.

If I remove this from /etc/resolvconf/resolv.conf.d/tail and restart
systemd-resolved, I no longer see 192.168.122.1 listed at all in
systemd-resolve --status.  So there is no longer any DNS loop; OTOH, I
also no longer get DNS resolution of the names of my VMs.  While this
works around the original symptom (which is still a bug somewhere, due
to the correct handling of A/CNAME/MX but wrong handling of SRV/URI),
there also needs to be a proper way to register libvirt's dnsmasq as an
auxiliary DNS server for the VMs.

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https://bugs.launchpad.net/bugs/1694156

Title:
  systemd-resolved and libvirt dnsmasq instance get into a busy loop
  when a query is issued for a URI or SRV record

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