This post is related to Bug CSCvx06532.

Both a fresh install and inline upgrade force DNSSEC on by default and use 127.0.0.1 as the DNS server. This can cause all devices that are using a DNS name rather than IP to fail collection but IPed devices will still complete. This can also cause issues with smart licensing if using DNS and not IP for the URL.

As indicated in the bug the workaround is to disable DNSSEC:

config t
 no ip DNSSEC
 ip name-server x.x.x.x (if you dont already have one)
exit
wr mem

From the GUI this can be seen under Administration / Dashboards / System Monitoring Dashboard. Expand “System Information” and under configuration, you will see that the DNS IP is 127.0.0.1.

System Information showing 127.0.0.1 as the DNS address.

If you look in the CLI with show run you will see IP DNSSEC but there will be a link for ip name-server if one has been added.

CLI view with DNSSEC enabled

Once you remove the DNSSEC as shown above you will see the name-server listed in the GUI.

System Information showing fixed DNS