Recognize BIND DNS and disregard Lightsail Networking

Check out this link: https://aws.amazon.com/premiumsupport/knowledge-center/ec2-static-dns-ubuntu-debian/

I found that the following worked for me.
Login to AWS console: https://console.aws.amazon.com
Create a new DHCP option set
Enter an option set name
Enter the domain name
Leave other fields empty
Go to "Your VPS's"
Select the VPC
Under "Actions" dropdown,
edit DHCP option set and select the set you just created
edit DNS hostnames... disable
edit DNS resolution... disable
Reboot the instance

After doing this my running BIND DNS server was recognized and I was able to enter DNS records there.