As a workaround, I commented out dns=dnsmasq in 
/etc/NetworkManager/NetworkManager.conf.
Now network manager adds VPN DNS servers to /etc/resolv.conf and everything 
works as expected.

As an additional benefit, it also adds and uses additional search domains but 
only with "Use this connection only for resources on its network" unchecked, so 
all traffic is routed to the tunnel.
With working DNS I can live with it for now.

I'm on Mint 18.3 Cinnamon.

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https://bugs.launchpad.net/bugs/1688018

Title:
  DNS server from vpn connection is not being used after network-manager
  upgrade to 1.2.6

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