Revert dns recursion changes

The changes had unintended side-effects for devenv extended tests.

Revert "fix typo, fix template name"
This reverts commit 8d12ed609f1ec19c7bd47144479cb41f68dfa633.

Revert "update resolv.conf template"
This reverts commit ec22e339c52d485bfaf6a87803f9a433b3d75ce4.

Revert "disable recursion for dns"
This reverts commit 921b51b5c7a7f06d5ca1a3c88d98b751f9026fb6.