When you say, "However instead it tries to pull from DockerHub and fails." Could you share the exact error message you receive?
For private registry, you may try the full > format as https:// followed by the fully qualified domain name of the registry.
Invalid image tag. Latest tag doesn't exist by default. Change the tag to the one built by DevOps build pipeline.
Also, review the Application Setting to allow App Service able to pull image from Azure Container Registry.
Just to highlight, yes, if you use a private registry and point to an Azure Container Registry. All the docker images are pulled from the registry docker.io in default. For the private registry, you must set the registry name before the image name.
Kindy navigate to Resource Explorer (https://resources.azure.com/)-> ( + ) on the Config -> Web -> Read/Write -> Navigate to the specific WebApp and review the 'LinuxFXversion' property.