I'm sorry Chrismal but you're simply wrong.
192.168.111.254/24 defines a network with 24 bits of network ID, and 8 bits of host ID. We read this as the last octet being the host address. The first address of the range is invalid, and the last address of the range is invalid, in this case 192.168.111.0 and 192.168.111.255. The first address is often used to reference the network, the last address is the subnet's broadcast address.
192.168.111.254/24 is a valid IP assignment within that IP network, it can be used for any device Untangle included. The DHCP range provided by DHCP services on the .254 address are irrelevant, and they are valid so long as they are within the scope of the complete range. 192.168.111.100 - 192.168.111.199 are valid for use, and will communicate with the gateway at .254 just fine, and this configuration is valid, and yes it will work.
To the OP, your IP configuration is valid, you need to figure out where your tagging is going wrong. The parent interface is the physical interface the VLAN virtual interface will receive packets on, given what you've indicated here the parent interface would be internal. Now, what this means is untagged traffic impacting the NIC internal is assigned to will be processed as traffic to the Internal interface. Traffic for your VLAN interface must impact on the parent interface, but be tagged with the VLAN tag specified on the virtual interface or they will be ignored.
Therefore, I assume your issues are with your tagging.
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