Ubuntu ignores my GUI entered nameservers?

I'm on Lubuntu 16.04 and have problems resolving names of my company's network through VPN. It's not so clear to me what has the last say on my system dnsmasq/resolvconf/network-manager... and would really appreciate if someone helps me to find the problem.

I have entered additional nameservers through the nm-connection-editor interface:

• 8.8.8.8 for the wifi connection that I use at home (for debugging only)
• 10.49.191.29 for the vpn connection (not actual ip)

But seems Lubuntu does not use either nameserver that I specified in the gui:

nmcli dev show | grep DNS
IP4.DNS[1]: 192.168.1.1

These 3 give me the correct addresses (while connected to the vpn):

nslookup internalcompany.host 10.49.191.259
nslookup google.com 192.168.1.1
nslookup google.com 8.8.8.8

While this fails (how can I still surf the web?):

nslookup google.com
Server: 127.0.0.1
Address: 127.0.0.1#53
** server can't find google.com: REFUSED

dnsmasq is running like:

` /usr/sbin/dnsmasq -x /var/run/dnsmasq/dnsmasq.pid -u dnsmasq -r /var/run/dnsmasq/resolv.conf -7 /etc/dnsmasq.d,.dpkg-dist,.dpkg-old,.dpkg-new --local-service`

/run/resolvconf/resolv.conf:

# Generated by resolvconf
nameserver 127.0.0.1
nameserver 127.0.1.1

/etc/dnsmasq.d/network-manager:

# Tell any system-wide dnsmasq instance to make sure to bind to interfaces
# instead of listening on 0.0.0.0
# WARNING: changes to this file will get lost if network-manager is removed.
bind-interfaces

/etc/NetworkManager/NetworkManager.conf:

[main]
plugins=ifupdown,keyfile,ofono
dns=dnsmasq

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