SQL Managed Instance in 2 regions error connecting in 1

Question

We have created a sql managed instance in the South Central Region and we connect using SSMS from outside the Azure network. We created another sql managed instance in the Central Region and added peering but cannot connect using SSMS outside the network. We can connect inside a VM on the Azure network. We do not have public access on either SQL MI as we want them private to our network. We emulated the current setup in the South Central. We even added the IP of the new SQL MI in Central to our host file but same error below.

A network-related or instance-specific error occurred while establishing a connection to SQL Server. The server was not found or was not accessible. Verify that the instance name is correct and that SQL Server is configured to allow remote connections. (provider: Named Pipes Provider, error: 40 - Could not open a connection to SQL Server) (Framework Microsoft SqlClient Data Provider)