I have a router running 3.7. Recently it stopped providing remote DNS requests. I do not know if it is not doing NS Lookups, or processing remote requests, or both.
Have another piece of info to add: I added a static entry into the table, and when I do a remote lookup, it works, so the problem is definitely that it is not doing a lookup of the upstream Nameservers that I entered into the Primary and Secondary DNS fields.