GitHub user weizhouapache added a comment to the discussion: External DNS 
servers provided with use.external.dns disabled

> In case of an isolated network, the resolvers configured are the Virtual 
> Router IP and external dns1/dns2 in zone setting. In our environment we have 
> no internal dns1/dns2 configured, so cannot say if those are added if those 
> are set.
> 
> The DHCP should give only the Virtual Router IP as DNS servers in case of 
> isolated network / vpc. Else the hostname entires in the VR make no sense if 
> it cannot used by the virtual machines.

I got same result as @kriegsmanj described, even if internal dns1/dns2 are set.

```
With setting on true: 
External DNS provided by DHCP (file /etc/dnsmasq.conf on VR)
dhcp-option=6,<external_dns_ip_1>,<external_dns_ip_2>
With setting on false: 
Internal + External DNS provided by DHCP (file /etc/dnsmasq.conf on VR)
dhcp-option=6,<virtual_router_ip>,<external_dns_ip_1>,<external_dns_ip_2>
```

GitHub link: 
https://github.com/apache/cloudstack/discussions/9030#discussioncomment-9295130

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