GitHub user DaanHoogland added a comment to the discussion: [Architectural] 
SystemVMs using public DNS server

@daniftodi is the problem that the DNS at 10.1.0.1 does not have information (A 
or CNAME) on 'storage1.lan'?

I'd have to look at an env, I don't think the fact that it is a basic zone 
matters in this case.

Is your systemvm image available and the ssvm started?

GitHub link: 
https://github.com/apache/cloudstack/discussions/10352#discussioncomment-12107532

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