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you've got me so curious, could you please point me to the aws docs?

It’s the first thing on google when you google “aws dns vpc limits” but sure:

https://docs.aws.amazon.com/vpc/latest/userguide/vpc-dns.htm...

Your VPC has a DNS server at .2 of your VPC CIDR block that is mounted via loopback on the dom0 and exposed to your VPC to let you do lookups via their DNS infra.

https://aws.amazon.com/premiumsupport/knowledge-center/vpc-e...

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