Trying to set up Tailscale to work with AdGuard Home. Not sure I have it configured correctly

My goal is to use Tailscale to block ads even when I'm outside my home network. To know Tailscale is working in conjunction with my AdGuard server, all the IPs in the AdGuard query log would be "100.x.x.x" Tailscale IP addresses instead of the actual device IP addresses, right? What I'm seeing in the query log is just my devices normal IPs.

My AdGuard Home is installed on Xubuntu Minimal device 192.168.86.78, a static IP address configured in the DHCP of my router. All client devices have had their preferred DNS set to 192.168.86.78, including my router. Tailscale is also installed on every device, barring the router. Under the DNS settings in Tailscale, I added 192.168.86.78 to be the Global Nameserver. Override DNS servers is checked. Then of course there's so many terminal commands I did that I can't keep track of. I was following this tutorial.

I'll include an album of pictures of my configurations, although I'm not sure what all I need to take pictures of. Forgive me for taking pictures of the screen of my Xubuntu device. It has no software loaded on it for screenshots. I'm not sure what information in these screenshots would qualify as stuff I shouldn't let everyone know, so warn me if I left in anything I shouldn't have.

Here is the album. Let me know if there's anything else that would help.

I thought I did everything according to the tutorial. I was only unsure about two things: the 2nd and 3rd paragraphs in "Connecting to AdGuard Home" section where I wasn't sure if he was repeating himself or saying to add two different IPs (I added one). The other thing I wasn't sure about was him talking about is the "Use Tailscale DNS" option. I see that on the mobile app on my phone, but not on the desktop web console so I'm not sure where to find it to enable on my Xubuntu device.

Any help? What am I missing?