Teleport VNET overlaps with proxy address cutting off its own connection

[Atroskelis]

Might be a config issue / misunderstanding on my part

Teleport v17.7.19

Teleport is teleport.mgmt.something.com
Clustername is teleportmgmt

VNET covets DNS of both teleport.mgmt.something.com and teleportmgmt
But after VNET connecting, dns to teleport.mgmt.something.com fails but teleportmgmt works for naught.
Results : linux jumps in teleport connect no longer work
SSH in CLI all get refused.
Teleport connect recconection fails

If i deactivate VNET, ssh jumps work again in Teleport Connect.

No network problems seeing. But errors show "Failed TCP dial to target, node might be offline" but it is online if VNET is down
What am i missing?