@MG ,
Both Static IP and Dynamic IP come with some advantages and some disadvantages, and which one t use is a debatable topic. Some enterprises have clear cloud guidelines on what services to be in static IP (like FTP server, Email Server, VPN, etc.) and what services/devices can be on dynamic IP. Microsoft also recommends such suggestions. For example, Don't assign a public IP address to your virtual machine, Instead, use a VPN or Azure Bastion to connect to the device. By default, a virtual machine (VM) is automatically assigned a private IP address from your specified range. This range is based on the subnet in which the VM is deployed. The VM keeps the address until the VM is deleted. Azure dynamically assigns the following available private IP address from the subnet you create a VM in. I recommend having a static IP address to the services where a change can bring down the service. So, you better have a static IP within your subnet for the Domain Controllers, DNS Servers, Application Servers, and other essential infrastructure Servers. So, The virtual machine must have a static IP address (within the subnet), and the primary DNS server must point to the on-premises domain controller.
I hope that helps.
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