It looks like you might have left the
<EventFiltering>
<DnsQuery onmatch="exclude" />
</EventFiltering>
part out of the config. The .\ sysmon64.exe -c
output should contain
...
- DNS lookup: enabled
Rule configuration (version 4.90):
...
- DnsQuery onmatch: exclude combine rules using 'And'
...
for that XML snippet from above.