Current images:debian/11/cloud does not set DNS server from DHCP server. It correctly sets IPs and routes though.
I had a look into VM itself and it looks pretty strange, it has both /etc/network/interfaces.d/50-cloud-init and /etc/systemd/network/enp5s0.network files. It’s really unclear to me why and which network setup does it finally use?
Could you please have a look into that and try to explain what is going on? Nobody experienced it before?
Ubuntu Jammy installed in the same environment works correctly.