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When you have not specified anything for the optional dns_nameservers attribute of the Quantum subnet, then the Quantum dhcp agent configures dnsmasq to push out the dnsmasq IP - in your case Have a look at /var/lib/quantum/dhcp/47d751a7-130e-412e-911a-d52525d83e21/opts. This happens about once per minute when the lease time is at the default 120 seconds. If dnsmasq is isolated in a IP namespace, then it will not be able to relay dns requests to upstream servers.

So the solution is to update the subnet with this attribute and DHCP will push it out to the instances. This can be done in Horizon or with the CLI eg:

quantum subnet-update <subnet id or name> --dns_nameservers