Thanks for the suggestion.
Yes, I disabled the DHCP server on the SH2 and used the DHCP server on the piHole. This works fine for IPv4 but not for IPv6.
The SH2 does not allow the user to control the Router Advertisement (RA) on IPv6 so it always sends out IPv6 DNS addresses via RDNSS.
I've now got the ER-605 working well, including the BT IPTV streaming. FYI, it required a second interface to be defined on the WAN port alongside the PPoE interface in order to receive the UDP MultiCast packets which are not encapsulated in PPoE. I've posted the solution onto the BT Community Forum so we shall see if it remains there!
cheers



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