I encountered the same issue as described in this issue
Environment details:
MacOS 13.7, Homebrew 4.3.18
problem detail and solved workaround
I installed dnscrypt-proxy using homebrew and started the service with sudo brew services start dnscrypt-proxy , as port 53 requires root privileges. When checking the logs, I also saw multiple [NOTICE] Network connectivity detected and [FATAL] listen udp 127.0.0.1:53: bind: permission denied messages.
I resolved the issue by running brew services stop dnscrypt-proxy and then sudo brew services restart dnscrypt-proxy.
I believe the cause of the "permission denied" error was an existing dnscrypt-proxy process started by Homebrew, which conflicted with the new service start attempt.
I wish it would be helpful to others.