If you want the router only works as AP, you need to set it up as AP mode in more settings->network mode.
If you set up custom DNS on the router, it will not affect your client. You can still set up custom DNS on your client. But you can choose to override the DNS query. The router will not pass the DNS settings to the client. This is by design and I don’t think there is a problem. The router can also set up encrypted DNS proxy so it tries to catch the DNS from clients, not pass through DNS to your clients.
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