This is the only masquerading rule I have enabled:

Right now, all hosts using this ASG are on this one local network interface labeled Quad 1 (LAN).
These are the packet filter rules I have enabled:

There were/are of course several other rules I was using to filter it down to just the protocols and host needed for the VPN connection but in order to see if the rules were actually being ignored I disabled all but these. The "tVM" host is defined with the correct IP address of tVM and tVM has only one network interface. Even with these two simple rules to drop all inbound and outbound traffic, it still is able to preform DNS resolution, load web pages, and communicate through many protocols to any host. If it turn off the rule allowing anything on the local network to get out, then all outbound network traffic is blocked as I would expect. My understanding is that the rules should be applied in numerical order and once a rule is matched to drop traffic, the rule should be applied and any following rules should not be considered. The rules to block traffic to and from tVM are before the rule allowing traffic and yet the rule with the higher/larger number seems to take precedence.
What crucial bit of information am I missing?
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