Proxy appliance as an internet proxy: How DNS works?

[chrisflyckelen]

Hi everyone,

I have a question about using the proxy appliance as an internet proxy for VMs running inside a Veeam Virtual Lab.

I enabled the internet access feature and configured HTTPS traffic on port 443. On a VM within the isolated network, I then configured the isolated-network IP address of the proxy appliance and the corresponding port as a proxy server in the web browser.

However, internet access is not working.

While troubleshooting, I started wondering how DNS resolution is supposed to work in this scenario. Typically, the VM sends DNS queries to an internal DNS server. If the requested hostname cannot be resolved locally, the DNS server forwards the query to an external DNS forwarder.

Since the proxy appliance only proxies the web traffic, how are DNS queries from the isolated environment handled? Does the internal DNS server require a separate route or masquerading rule for external DNS resolution, or is DNS resolution handled by the proxy appliance as part of the proxy connection?

Could someone explain the expected DNS and traffic flow in this setup?

Thank you,
Christian