Sounds like you may need a split brain deployment.
https://learn.microsoft.com/en-us/windows-server/networking/dns/deploy/split-brain-dns-deployment
also note install active directory domain services and IIS together is risky and conflicting. A better option may be to install the hyper-v roles (as only role) on host, then stand up two virtual machines, one for IIS application and other as active directory domain controller.
--please don't forget to Accept as answer if the reply is helpful--