adb-with-private-link-standard unable to connect to workspace unless adding a CNAME in private dns zone

[AurimasNav]

I've been following example https://github.com/databricks/terraform-databricks-examples/tree/main/modules/adb-with-private-link-standard, but I can't seem to be able to login to UI.

When clicking "launch" on databricks worksapce new tab opens, my workspace url flashes for a bit in address bar, then it changes to westeurope-c2.pl-auth.azuredatabricks.net/aad/redirect and I get an error that website can't be reached.

If I try to resolve the DNS for westeurope-c2.pl-auth.azuredatabricks.net while connected to VPN, it can't be resolved, if I add a CNAME record pointing westeurope-c2.pl-auth.azuredatabricks.net to westeurope-c2.azuredatabricks.net in my privatelink.azuredatabricks.com dns zone, then I am able to login, but it feels like a hack, since I have not seen such a requirement in the provided example.