I'm having the same issue with Squid; where the black list is not working. I have set "www.google.com
" into the black list, and ALL" web traffic gets blocked by Squid even browsing to the GUI itself of PFsense "Localhost" gets blocked, even though I have checked the bypass proxy for local addresses.
I also tested this on the latest platform on PFsense "pfSense 1.2.3-RC1" and the Squid is worst on this one, the tabs are no longer present, there are drop down menus; which are not working on Internet Explorer only on firefox, in addition to the black list not working.
Attached you will find the info of my platform and tests performed. Any help would be appreciated. Thanks!