Proxy with ad filtering - Squid + Adguard?


I am willing to connect a mobile terminal with low hardware specs and only partial Android implementation to Internet through a proxy for privacy purpose and ad-filtering to save some CPU & memory usage.

To do so I installed YNH Squid3 package & YNH Adguard Home packages. It works as expected with Squid3 (utlimate IP address is hidden by proxy), but not with Adguard (queries log only shows those of some bots which managed to reach this instance, but nothing related to my own queries).

I’m not fully sure I understand correctly how Adguard is meant to work. But since Squid conf file has the following by default dns_nameservers and AdGuard setup guide states that it is listening to my server’s IP address on which both Squid3 and Adguard are installed, I thought it would work magically.
Is there additional configuration that could be made so that Squid proxy uses Adguard DNS by default ?

I found this tutorial in which they propose to install a SOCKS proxy using squid, dante-server and apache-utils for htaccess. However they then make use of AdGuard’s Android app which cannot be installed on my mobile terminal (I can only configure IP address & port of the proxy server, no more). Could the magic happen server-side?