Release notes say DNS blocking has been added: [Added] "DNS Privacy" settings section #887
This section should look familiar to seasoned AdGuard Pro users. Basically, this is where you have a chance to configure DNS settings the way you like it ー and further protect your privacy along the way. The main difference to the Pro version is that there's no blacklist or whitelist here, this was impossible under the current Apple policy. However, there is a requests log that will provide you information about everything that's going on on your device.