We have managed to figure this out : The behavior is by design: You cannot access the SSRS web site from the local server itself using the FQDN, due to an NTLM loopback protection security feature. However, this will work fine when accessing the SSRS site remotely from another host or service. This behavior can be altered by editing the registry.
Azure - Connecting web app service to SSRS using Auto assigned private DNS
Chris Boyce
20
Reputation points
I am working on a project using SSRS on a VM , SQL Managed instance and a Web app service (.net8) .
I am trying to use the private DNS name provided by Azure to the VM and opened port 80 and connect via url I can hit the SSRS reports server through a browser but my credentials won't work.the local report addres works fine its just the Private DNS won't authenticate
Did I miss somthing to allow the credentials to work, I'm not using port 1433 as I don't use the data base only the SSRS.
Everything I've read only covers using the Public DNS to connect not the private DNS