One more follow-up to give you all the info. I did configure the plugin to act as a subnet router (with the internal subnet of my lan which is also the external IPs of the docker containers) but that did not have an effect. Also, when the tailscale plugin is enabled, the App store no longer connects. So I'm wondering if there is something wrong in my setup.
Settings:
Tailscale Enabled: Yes
Unraid services listen etc.: Yes
Ip forwarding: no
Use Tailscale Subnets: Yes
Use Tailscale DNS: Yes (note - tailscale points to my internal pihole servers as DNS)