Hello @Nir Hazan,
your understanding is correct, you can configure those address with Dummy address ranges and those are used for internal k8s communications !
You might already know when you create the AKS cluster by default it will use Service CIDR as 10.0.0.10 & Docker CIDR as 172.17.0.1/16 . Those CIDRs can be overridden with any of the dummy addresses. I just tested by using Service CIDR : 22.214.171.124 Docker CIDR : 126.96.36.199 . Basically , the services (cluster ip) which gets created will be based upon the Service CIDR address.
When you are creating AKS cluster by explicitly mentioning those CIDR addresses , kindly make sure to mention DNS service IP also.
Sample command used for my testing:
az aks create --resource-group myResourceGroup --name myAKSCluster --service-cidr 188.8.131.52/16 --docker-bridge-address 184.108.40.206/16 --dns-service-ip 220.127.116.11