How does AdGuard work?

[wcs2228]

VPN policies do not work with AdGuardHome. VPN without policies should work.

VPN Policy Base on the Target Domain or IP issues

Yes, these configs causes all DNS requests to be resolved in ADGuard Home. As a result the VPN does not know exactly which domain your client is requesting. Incidentally, in version 4.2, the firmware has been added to provide options and descriptions. Users can turn on ADGuard Home Handle Client Request, where ADGuard Home will show which client the request is coming from, but the domain based VPN policy will not work.