I have a postgres private (vnet integrated) flexible server. At creation I set the private_dns_zone_id. The MI doing the deployment has private dns zone contributor rights.
The server is created but the private dns zone entry is some random string instead of the server name i.e.:

Reading through some other questions makes me believe this should be the case because of dynamic ip’s.

However, the server is not resolvable:

I am running this command from a vm in the same vnet as the psql server. We have private dns resolver and azure default dns server set at the vnet level. This vnet is a spoke vnet of the hub.
This error might be related to this question

The server is reachable over ip address.