If it's a DNS based privacy service (such as the mentioned "DNS service that essentially does what pihole does with easier configuration") they'll need to see y

If it's a DNS based privacy service (such as the mentioned "DNS service that essentially does what pihole does with easier configuration") they'll need to see your DNS traffic to know when to block the traffic. If you use services like Google or Cloudflare to provide DNS over HTTPS they've got access to your traffic and you're vulnerable to being tracked by them anyway.