GrouchyGrape
A quick test shows that setting my Private DNS to dns.adguard-dns.com will give me a DNS leak on the Mullvad check service, but switching it to Automatic (what I had originally) will, as previously stated, show it as Mullvad DNS. So yes, it overrides if you explicitly set the DNS, but simply having Automatic (the default) does not seem to override the VPN.