Thank you for reaching out to us via email, I have just replied to your email.
Another update from on this issue is :
We've rolled out a fix for this issue and the fix is already in the prod and all newly created private endpoint for Azure API Management will no longer have the issue.
At the same time, we are working on fixing the existing broken private point cnames.
It will be helpful if you test this out and let us know if you are still facing this issue. Thank you!
Please "Accept the answer" if the information helped you. This will help us and others in the community as well.