I finally figured this out and it only just occurred to me what potentially is causing this issue. Refer to screenshots further below. The IP address/netmask conflict with Mullvad DNS Adblock ip addresses.
To overcome I created a static address but changed the netmask to 255.255.255.0 so that the Mullvad dns addresses don’t fall in the usable range.
Question is. Once the Wireguard tunnel is up shouldn’t all network traffic go through the tunnel including the dns traffic? Are there any rules or settings I can override in luci so that I can workaround this other than reconfiguring lan to static address (static not ideal may just create problems later on).
Before with dhcp assigned address. Mullvad DNS’s 100.64.0.x do not work:
After with static assigned address with modified netmask to exclude the Mullvad adblock dns range. Internet/pages now load: