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• Data Pipelines in Microsoft Fabric are built on Azure Data Factory. When a pipeline writes data to OneLake or other destinations, it leverages ADF's managed infrastructure and integration runtime, which handles connectivity differently and does not rely on the same DNS resolution path as DF.
• Dataflows Gen 2, are built on Power Query and run using the on-premises data gateway infrastructure, it executes the queries from the environment where the gateway is installed. The network configuration and DNS resolution of the gateway host (in this case, your GCP VM) directly impacts the ability to connect to external services like SQL Server."
Currently, For Dataflow DNS team need to open direct conenction (*.datawarehouse.pbidedicated.windows.net, *.datawarehouse.fabric.microsoft.com) via DNS exception. Large companies does not allow to open this connection instead they ask Product to work with proxy setting on server to open.
Requesting Power BI team to have similar setting like Datapipeline to Dataflow.
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