I’m confused. The PiHole is 192.168.1.2, correct? You are advertising 192.168.1.2 to your DHCP clients so therefore they should be querying the PiHole directly and you should see requests per-host.
The problem I am mentioning with your forwarding settings is that your Edgerouter is configured to forward requests it receives to the PiHole and the PiHole is configured to forward request it receives to the Edgerouter. Just disable DNS forwarding on the Edgerouter altogether and use nameservers for the system services only. On your PiHole remove the Edgerouter as an upstream forwarder and enable one of the others (Google for example).
The problem I am mentioning with your forwarding settings is that your Edgerouter is configured to forward requests it receives to the PiHole and the PiHole is configured to forward request it receives to the Edgerouter. Just disable DNS forwarding on the Edgerouter altogether and use nameservers for the system services only. On your PiHole remove the Edgerouter as an upstream forwarder and enable one of the others (Google for example).