dhcp uses 127.0.0.1 as a nameserver on external nic and passes it to clients
When I enable dhcp on the external interface (eth0 in my case) I get 127.0.0.1 as the first nameserver and my client pc also get that as the nameserver. The lease entry in /var/lib/dhcp3/dhclient.eth0.leases on the core gets an entry like:
option domain-name-servers 127.0.0.1,18.104.22.168,22.214.171.124;
maybe it needs to filter out the invalid 127.0.0.1 address? When I manually remove the 127.0.0.1 entry from resolv.conf it works properly.