Thanks for the reply Matt, here are the logs from the client:
112022-06-13 12:48:20.573425-0400 0x3d35 Default 0x0 1166 0 com.uptycs.kringle.daemon: (NetworkExtension) [com.apple.networkextension:] (0): Creating a new flow director
122022-06-13 12:48:20.573623-0400 0x3d35 Default 0x0 1166 0 com.uptycs.kringle.daemon: (NetworkExtension) [com.apple.networkextension:] [Extension com.uptycs.kringle]: Calling startProxyWithOptions with options 0x0
132022-06-13 12:48:20.573639-0400 0x3d35 Default 0x0 1166 0 com.uptycs.kringle.daemon: [com.uptycs.kringle:dns-proxy] start
142022-06-13 12:48:20.576279-0400 0x3d35 Default 0x0 1166 0 com.uptycs.kringle.daemon: [com.uptycs.kringle:dns-proxy] ready
...
2022-06-13 12:48:28.222215-0400 0x3cfa Default 0x0 158 0 sysextd: [com.apple.sx:XPC] client activation request for com.cisco.anyconnect.macos.acsockext
172022-06-13 12:48:28.264605-0400 0x3dc4 Default 0x0 262 0 nesessionmanager: (NetworkExtension) [com.apple.networkextension:] Clearing 42C1466A-D643-4CCB-9B29-A0FDF2B57F03 from the loaded configurations
182022-06-13 12:48:28.275395-0400 0x3dc6 Default 0x0 262 0 nesessionmanager: [com.apple.networkextension:] <NESMServer: 0x7ff0b3d047b0>: Deregister DNS Proxy Session: NESMDNSProxySession[Primary Tunnel:Uptycs Protect DNS Proxy:42C1466A-D643-4CCB-9B29-A0FDF2B57F03:(null)]
192022-06-13 12:48:28.275411-0400 0x3bcc Default 0x0 262 0 nesessionmanager: [com.apple.networkextension:] Registering session NESMDNSProxySession[Primary Tunnel:Cisco AnyConnect Socket Filter:FA292875-ADE4-4304-9423-E4527401CBAA:(null)]
202022-06-13 12:48:28.276187-0400 0x3d6a Default 0x0 1166 0 com.uptycs.kringle.daemon: (NetworkExtension) [com.apple.networkextension:] [Extension com.uptycs.kringle]: Calling stopProxyWithReason because: Configuration was disabled
212022-06-13 12:48:28.276190-0400 0x3d6a Default 0x0 1166 0 com.uptycs.kringle.daemon: [com.uptycs.kringle:dns-proxy] stop: 9
You can see from the logs that our DNS Proxy (com.uptycs.kringle.daemon) is started and then ~8 seconds later the Cisco NSYSEXT is started and our Proxy is stopped with code 9
(NEProviderStopReasonConfigurationDisabled). The Cisco NSYSEXT contains a socket filter and a DNS proxy. Our SYSEXT also contains a socket filter and a DNS proxy and only the DNS proxy is being stopped.