Hi @Atharv Gupta ,
I would recommend using a conditional forwarder in internal DNS. Works here without issues in different environments at different customers:
https://learn.microsoft.com/en-us/azure/private-link/private-endpoint-dns#on-premises-workloads-using-a-dns-forwarder
https://learn.microsoft.com/en-us/azure/private-link/private-endpoint-dns#virtual-network-and-on-premises-workloads-using-a-dns-forwarder
----------
(If the reply was helpful please don't forget to upvote and/or accept as answer, thank you)
Regards
Andreas Baumgarten