I recently came to realize that I had this problem as well. I had deployed an Azure P2S VPN about 2 months ago, then I later added an Entra Domain Services domain to my tenant. Last week, I noticed that when my VPN was connected, my local laptop lost all Internet connectivity.
Through testing, I realized that if I removed the DNS Server entries from the VNet which hosts my VPN, all local Internet connectivity was restored. This strongly suggested that the issue was with the Entra DS and the associated DNS components.
On a hunch, I decided to redownload the VPN Config from the portal and compare it to the config I had loaded in Intune for deployment to our Laptops. It was then that the issue was obvious - the DNS Servers from the Entra DS deployment ARE part of the VPN Config, which makes sense. Since my VPNConfig was deployed prior to the deployment of Entra DS, the config was missing these entries.
These entries look like this;
<clientconfig>
<dnsservers>
<DnsServerEntry>
<dnsserver>10.1.2.4</dnsserver>
</DnsServerEntry>
<DnsServerEntry>
<dnsserver>10.1.2.5</dnsserver>
</DnsServerEntry>
</dnsservers>
<excluderoutes i:nil="true" />
<includeroutes i:nil="true" />
</clientconfig>
After adjusting the VPNConfig in Intune so that it contained the DNS Nodes, the issue persisted. After a bit of cursing and complaining, I searched for some documentation about the schema of this XML file and that is when I stumbled onto the final fix for this issue.
It turns out, the schema for this document does NOT match the actual document you get when downloading your VPN Config from the Azure Portal. The correct schema for this block of config is actually as follows;
<clientconfig>
<dnssuffixes>
<dnssuffix>.mydomain.com</dnssuffix>
</dnssuffixes>
<dnsservers>
<dnsserver>10.1.2.4</dnsserver>
<dnsserver>10.1.2.5</dnsserver>
</dnsservers>
</clientconfig>
Note the omission of the “DnsServerEntry” wrapper nodes.
Once I loaded THIS structure into Intune and pushed down to my device, the issue went away completely. Now, when I am connected to our VPN, I do not lose Internet connection and everything seems to be back to working as expected.
Hope this helps other people who hit this issue.