Hello Khaled,
Thank you for your questions. If you are using Azure-provided DNS, the appropriate DNS suffix will be automatically applied to your virtual machines. For all other options, you must either use Fully Qualified Domain Names (FQDN) or manually apply the appropriate DNS suffix to your virtual machines.
I conducted a quick test in my lab, and it worked fine with Azure-provided DNS. If you are using custom DNS, Azure DNS private zones are the preferred solution, offering flexibility in managing your DNS zones and records. You can refer to this article that explains name resolution for resources in Azure virtual networks. https://learn.microsoft.com/en-us/azure/virtual-network/virtual-networks-name-resolution-for-vms-and-role-instances?tabs=redhat