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Using VPN client = make AdGuard DNS or PiHole useless ?

ibex

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Using Asus RT-AX86U pro, Operation Mode: Wireless router, stock Firmware Version: 3.0.0.6.102_34349. The router is configured with a VPN Fusion profile using a Surfshark VPN account. Wired or Wireless clients could use successfully the VPN profile. But ads are not blocked.

I have tried to set the WAN DNS servers to use Adguard DNS: 94.140.14.14 and 94.140.15.15. But the ads are not blocked. I also have a PiHole server, running in a VM. Using the Asus FAQ How to configure router to use Pi-Hole?The guide starts with a warning:

Note: If the device is connecting to the router using a VPN client, ads cannot be blocked.
Please refer to
How to set up a DNS server on a VPN server in the router?

In my case I don't have any VPN Server. Just VPN client, configured in the Asus router using Wireguard connecting to my Surfshark VPN account. It looks like I am in the scenario of "If the device is connecting to the router using a VPN client, ads cannot be blocked". I have also looked up in a few internet searches about using PiHole + VPN like this Reddit answer, which I am not sure I understand fully. I don't think Surfshark VPN service allows me to configure a custom DNS.

QUESTION: I would like internet traffic of clients in the home network to go through the Pihole first, to void some sites like social networks or to kill ads. Then for anything not blocked, PiHole just forward the request to the upstream DNS servers configured in the PiHole server itself. Then the client traffic goes out to the internet through the router which has a VPN client. Would this scenario be possible?
 

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