The current implementation of iCloud Relay bypasses your Diversion (or any other router bases DNS AdBlocker for that matter).
Best way to test ….
Diversion On Router Enabled, Disable iCloud Relay on Apple Devices: Ads blocked
Diversion On Router Enabled, Enable iCloud Relay on Apple Devices: Ads not blocked
As I understand it, iCloud Relay uses its own set of DNS servers (Cloudflare) and bypasses all local DNS setup. It is almost like a VPN, but only for DNS traffic.