Hello IgorTTG
Greetings!
Thank you for your response.By default, DNS servers within a virtual network are configured to direct point-to-site clients through a VPN gateway. When you designate the Private resolver incoming IP address as a custom DNS server for the virtual network, these IP addresses will be automatically assigned to clients as the VPN DNS server. This setup facilitates smooth record resolution from private DNS zones, including private endpoints.
For a clearer understanding of the issue, please refer to the document.
With out conditional forwarder it will not work as expected you need to set a conditional forwarder on your on-prem DNS server machine pointing to the private DNS resolver IP this the Microsoft recommended scenario.
Hope the above answer helps! Please let us know do you have any further queries.
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