Hello @Srikanth TV ,
Welcome to Microsoft Q&A Platform. Thank you for reaching out & hope you are doing well.
I understand that you are facing connectivity issue from an Azure VM to the backend service on a Container App mapped to same Vnet.
As per Networking requirement, when using an internal Container Apps environment, you must create a private DNS zone that resolves the Container Apps environment's default domain to the static IP address of the Container Apps environment, or you can use your own custom DNS server.
You've not mentioned anything about your DNS configuration in the setup. But I assume you are using the default Azure-provided DNS server.
If yes, then you must create a private DNS zone names as the Container App environment's default domain with an A record containing the static IP address of the Container App.
Without a private DNS zone or your own DNS server, the Azure VM will not be able to resolve the FQDN of the internal Container Apps configured in the Vnet. Without this DNS binding, the Container Apps will not be accessible.
So, to resolve this issue, you need to either create a private DNS zone and link it to the Vnet or use your own DNS server.
Kindly let us know if the above helps or you need further assistance on this issue.
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