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Start using dnsmasq as the initial dns server
So far we have not been using dnsmasq for DNS queries, we just used it to configure public dns server addresses in the VM. Therefore, all the dns queries hit to a public dns server after the VM, for sure. Now, we configure dnsmasq to also run as a dns server. This way, if the address is cached locally in the dnsmasq, we skip going to a public server and respond locally from the host. To be able to do that, we assign a private ipv6 address to the dnsmasq server, make it listen there and as part of the DHCP requests, we send the dnsmasq's address to the client as the dns server.
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