Ubuntu 16.10: Setting own DNS server via network connection does nothing

[vvhk]

Setting my "Wired connection 1", IPv4 tab:

Method: Automatic (DHCP) addresses only
DNS servers: 127.0.0.1 (runs Bind)

Saved. Restarted (in 16.04 disconnecting, reconnecting would suffice). Rebooted even.

/etc/resolv.conf still points nameserver 127.0.1.1 and doesn't use my bind at 127.0.0.1 to resolve.

This used to work in 16.04.

ProblemType: Bug
DistroRelease: Ubuntu 16.10
Package: network-manager 1.2.4-0ubuntu1
ProcVersionSignature: Ubuntu 4.8.0-30.32-generic 4.8.6
Uname: Linux 4.8.0-30-generic x86_64
NonfreeKernelModules: zfs zunicode zcommon znvpair zavl nvidia_uvm nvidia_drm nvidia_modeset nvidia
ApportVersion: 2.20.3-0ubuntu8
Architecture: amd64
CurrentDesktop: Unity
Date: Wed Dec 7 11:08:13 2016
IfupdownConfig:
 # interfaces(5) file used by ifup(8) and ifdown(8)
 auto lo
 iface lo inet loopback
InstallationDate: Installed on 2016-11-28 (8 days ago)
InstallationMedia: Ubuntu 16.10 "Yakkety Yak" - Release amd64 (20161012.2)
IpRoute:
 default via 192.168.1.1 dev enp3s0 proto static metric 100
 169.254.0.0/16 dev enp3s0 scope link metric 1000
 192.168.1.0/24 dev enp3s0 proto kernel scope link src 192.168.1.26 metric 100
IwConfig:
 enp3s0 no wireless extensions.

 lo no wireless extensions.
NetworkManager.state:
 [main]
 NetworkingEnabled=true
 WirelessEnabled=true
 WWANEnabled=true
RfKill:

SourcePackage: network-manager
UpgradeStatus: No upgrade log present (probably fresh install)
nmcli-con:
 NAME UUID TYPE TIMESTAMP TIMESTAMP-REAL AUTOCONNECT AUTOCONNECT-PRIORITY READONLY DBUS-PATH ACTIVE DEVICE STATE ACTIVE-PATH
 Wired connection 1 c7e523fd-a4cc-3e56-94c4-ddea43b1f11c 802-3-ethernet 1481105052 Sri 07 Pro 2016 11:04:12 yes 4294966297 no /org/freedesktop/NetworkManager/Settings/0 yes enp3s0 activated /org/freedesktop/NetworkManager/ActiveConnection/0
nmcli-dev:
 DEVICE TYPE STATE DBUS-PATH CONNECTION CON-UUID CON-PATH
 enp3s0 ethernet connected /org/freedesktop/NetworkManager/Devices/0 Wired connection 1 c7e523fd-a4cc-3e56-94c4-ddea43b1f11c /org/freedesktop/NetworkManager/ActiveConnection/0
 lo loopback unmanaged /org/freedesktop/NetworkManager/Devices/1 -- -- --
nmcli-nm:
 RUNNING VERSION STATE STARTUP CONNECTIVITY NETWORKING WIFI-HW WIFI WWAN-HW WWAN
 running 1.2.4 connected started full enabled enabled enabled enabled enabled

[vvhk (vvhk-deactivatedaccount-deactivatedaccount)]

Btw, it _is_ interacting with resolv.conf because my "Search domains" I configured in the network connection are getting in there.

[Sebastien Bacher (seb128)]

there are other dns issue reports like bug #1629611