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I recently switched from Pi-Hole to Adguard Home just to try it out. So far the user experience isn't any different but I have to say the Adguard web UI is quite nice.

I have to say installation on Ubuntu Server (which I run on a Pi4 just fine) couldn't be easier as it is as simple as 'sudo snap install adguard-home' and it all just works. Very nice.

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I'm also a Pihole -> Adguard convert and it's been quite nice.

AdGuard allows 'approved ads', which for some of us is a dealbreaker.

I believe you are thinking of the Adguard Plus browser extension. We're talking about the Adguard Home DNS blocker which is a totally separate thing.

Does it block YouTube ads?

In my experience none of the DNS blockers such as Pi-Hole or Adguard block YouTube ads.

In the browser uBlock Origin handles this fine. On device you need to use a third party app to view YouTube that has adblocking functionality built in.

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