Hello Boban Mitevski,
External DNS with Kubernetes can be possible is possible to setup, which can work with AGFC in a similar manner to Application Gateway setups.
This integration allows you to automatically create DNS records in your DNS provider like Azure DNS, based on Kubernetes resources like Ingress objects.
https://learn.microsoft.com/en-us/azure/aks/ingress-basic?tabs=azure-cli
For AGFC, you can try utilizing cert-manager to obtain and renew certificates from Let's Encrypt, just as you would with the traditional Azure Application Gateway Ingress Controller
Hope this helps you.