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

> @kriegsmanj the description of the global setting is: `Bypass internal dns, 
> use external dns1 and dns2` it looks like the global setting is used to 
> determine if internal dns is bypassed. external dns1/dns2 are always used.

To me this means: dns is not going "instance -> vr -> external dns", but 
bypasses internal,  "instance -> external dns"

Using both internal + external at the same time, where the internal also has a 
host-file with all entries of instances in that network makes no sense. Some 
app use the resolvers in random and not just the first configured. This causes 
lookup errors for these hostnames when it randomly uses the external resolver 
to resolve an internal hostname

GitHub link: 
https://github.com/apache/cloudstack/discussions/9030#discussioncomment-9295127

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