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

> As a workaround you can configure your internal DNS server as external DNS 
> server as well, or not configure an external DNS for this network.

This particular workaround won't work as the only DNS resolver that keeps VM 
name -> VM address records is the DNS server running on the Virtual router.

There could be 3 scenario, lets consider the use case for each of them:
**Instances use only VR IP as a resolver**.
It is needed in case of Isolated networks and VPCs. The instances there are 
expected to be able to reach another instance within the same network by its 
name. 

**Instances use only External DNS IPs as resolvers**
This is mostly suitable for Shared networks. Shared network instances typically 
have public IPs on them, they don't rely on the Virtual Router to reach the 
Internet. Thus, there is no need to bind them to a VR that can go offline for 
some reason. 

**Instances use both VR IP and External DNS IPs as resolvers (current 
behavior)**
No specific use case for it which makes it a good default value.

I think the best approach to give flexibility to the CS users while also 
keeping the backwards compatibility would be to implement it as a Network 
Offering setting, e.g.:
```
Setting name: DHCP DNS servers policy
Possible values (select one): Virtual Router address, External DNS servers, 
Both (default)
```
This way the Cloudstack admins will decide what is best for their users on the 
Network Offering level, without having to set it per individual network.

GitHub link: 
https://github.com/apache/cloudstack/discussions/9030#discussioncomment-9296519

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