DNS server behind XG firewall NAT

Hello community,

Recently i was asked to migrate an existint configuration from a router to XG firewall and here is the scenario :

an application running in my local server with the name :

transmission.local.co IP@ is 192.168.62.11 

DNS server with the ip@ 192.168.62.80

The firewall XG230 ios 18.5.1 have three lan interface (192.168.59.1 | 192.168.61.1 | 192.168.62.1) and one WAN interface (192.168.60.1) :

I configured the firewall DNS as follow : DNS1:127.0.0.1  |  DNS2:192.168.62.11 

I nated the DNS with the wan address 192.168.60.180

and the application server with the wan address 192.168.60.111

Also i created a DNAT rule with the wizard to redirect traffic coming to 192.168.60.180 => 192.168.62.80

                                                                                                                192.168.60.111 => 192.168.62.11

now the problem is that a subnet in the wan (192.168.35.0) has its DNS configured on 192.168.60.180 which will be redirected to my internal DNS to resolve transmission.local.co is getting a response of 192.168.62.11 instead of 192.168.60.111

Whats the problem and how to fix. is it my configuration or something else?

Thanks in advance.