AdGuard Home Addon only in clients through the WireGuard tunnel


I have a Home Assistant Operating System VM hosted in the cloud with WireGuard and AdGuard addons installed.
On the premises, I have a MikroTik router set up.
WireGuard tunnel has been established for communication between the HAOS VM and the MikroTik router.

Whenever there are DNS requests from the local site clients directed to AdGuard (using either the or the VM’s IP), they are being displayed as requests originating from the

FYI I have also installed AdGuard and WireGuard natively on a separate Linux VM. AdGuard is functioning as expected and I am able to see all the Client IDs originating from the local site.