Tried this as well (DNS LAN/WAN) and added a routing policy for everything from the LAN2 subnet to go directly to WAN1 with NAT, still nothing routes out to internet.

When I go under route policy and diagnose if I run an example from the source of a LAN2 IP to 8.8.8.8 it works and says it will follow the default route out of WAN1

What happens if you do that with "Any IP" as the destination instead of 8.8.8.8?

With the policy I just created it matches that and goes to WAN1 (which is my internet connection on VDSL) if I disable that policy it still goes to WAN1 following the default route, paste of it below, 10.102.1.10 would be the first IP from the DHCP scope on LAN2

Packet Information
Protocol
Src IP
10.102.1.10
Dst IP
Dst Port
Analyze
Analysis

the packet


LAN

Vigor2860
WAN1

The packet was sent via WAN1 according to the default route "0.0.0.0/0.0.0.0 WAN1"
Matched Route
Matched Priority
0.0.0.0/0.0.0.0 WAN1 250

Matched Policy
Matched Priority failovered
N/A N/A N/A

And an ipconfig on the second vlan resolves? What are both the vlan ranges?

The router happily dishes out an IP to a device (tried a laptop and a tablet both the same) gets the IP etc and can ping the gateway but nothing beyond.

LAN1 - 10.101.1.0/24 DHCP .10-.100
LAN2 - 10.102.1.0/24 DHCP .10-.30

Gateway on each is .1 and DNS set to use Google public on each but its not a DNS issue as I cant ping anything by IP past the gateway.

Can you get screenshots sent of WAN LAN, and route policies?