Vyos 1.5 pppoe client ignores IPCP dns settings

General questions
2 
set service dns forwarding ?

Have you setup dns forwarding?

Mine looks like so:

     dns {
         forwarding {
             allow-from 192.168.0.0/16
             cache-size 32768
             dnssec off
             listen-address 192.168.0.1
             name-server x.x.x.x {
             }
             name-server y.y.y.y {
             }
             serve-stale-extension 120
         }
     }

You’ll see I’m statically setting the DNS servers, not using the DHCP learnt ones (I don’t have a PPPoE Interface to test with"

set system name-server '192.168.0.1'

I think you can also do set system name-server pppoe0

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