Hello,
Thank you for posting in Q&A forum.
Yes, you can consolidate smaller subnets into larger ones, which will not impact the DHCP dynamic update.
After the change you can double check it on DHCP Server if DHCP server is still configured to update DNS records properly.
To help other customers who may be facing the same issue, please don't forget to vote if the reply is helpful.
Best regards,
Jill Zhou