Hello,
The error you are encountering seems to be about DNS resolution.
Please make sure that 168.63.129.16 is defined in the DNS settings on the VNET configuration.
You should also check NSG settings to see if traffic is allowed.
Also double check your logic app connection configuration.
https://learn.microsoft.com/en-us/azure/virtual-network/what-is-ip-address-168-63-129-16
This ip enables communication with the DNS virtual server to provide filtered name resolution to the resources (such as VM) that don't have a custom DNS server. This filtering makes sure that customers can resolve only the hostnames of their resources.
Hope this helps
Regards