* IP address: You should use 10.0.1.3 as the IP address for DC1. This is because DC1 needs to have a static IP address within the subnet range of VNET1, which is 10.0.1.0/241. You cannot use 10.0.2.1 or
192.168.2.1, as they are outside of the subnet range of VNET1. You also cannot obtain an IP address automatically, as this may cause DC1 to lose its IP address and break the DNS resolution for the domain members2.
* Name Resolution: You should configure VNET1 to use a custom DNS server that points to the IP address of DC1, which is 10.0.1.33. This is because DC1 is the domain controller and DNS server for contoso.com, and it needs to resolve the AD DS DNS names for the domain members that are in Azure or on-premises. You cannot use the default Azure-provided DNS server, as it does not support AD DS DNS names. You also do not need to create an Azure Private DNS zone or an Azure public DNS zone named contoso.com, as these are not required for AD DS DNS resolution.