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I am so confused about what you're describing here.

Apps get static IPs, at no point would you need to make a DNS change to route traffic to a new instance.

VMs can definitely fail silently. When apps fail, we're not very good at notifying you of what's going on. I'm hoping that improves this year.

My domain DNS records were pointed to the Fly app IP. When the app silently died, and support wasn't able to help they suggested me to launch a new app which meant new IP for DNS.

I was about to demo my app to someone and quite shock that my app was down. Though, it's super easy to restart with a single fly command.

That’s what I get from reading all these comments here.