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DNS Servers specified for a Network Interface take precedence over those specified for the VNet. This means if you want specific machines on your VNet, use a different DNS Server, you can assign this at the NIC level, and the VNet DNS Server setting will be ignored by that VM

From

Cover of Exam Ref 70-533 Implementing Microsoft Azure Infrastructure Solutions

Note

Important. Dns NIC settings take precedence over the VNET ones. This will take into consideration first and the one of the VNET will be igonore.