DHCP server in Azure Active Directory Domain Services

I have setup an RDS Personal Virtual Desktop Collection using a nested Hyper-V server (Windows 2016) under Azure. Azure is using Azure Active Directory Domain Services, which can provide DHCP addresses to any Virtual network created within Azure. However, in the Hyper-V nested server, I have had to setup an internal virtual network for the RDS Desktop Collection (5 x Windows 10 Pro workstations). In an non-Azure AD Domain Services network, it would be simple to set up a DHCP server on the Hyper-V hosting server to provide IP Addresses to the virtual network. However Azure AD Domain Services will not allow a DHCP server to be activated as no AAD DC Administrator has Domain Admin privileges.

So has anybody achieved either setting up a DHCP server in Azure AD Domain Services or have you managed to link the nested Hyper-V virtual network back to an Azure virtual network/subnet so DHCP addresses can be provided to the nested virtual network and therefore the 5 workstations connected to it?

It does work using the Hyper-V virtual network switch configured with a static address and NAT'd with a Class-C subnet but each workstation has to be configured manually with an IP static address.

Any suggestions or solutions would be gratefully appreciated.
Kevin DIT ConsultantAsked:
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MaheshArchitectCommented:
Virtual desktops cannot get DHCP lease from Azure DHCP provider until VM exposed to Azure network
Are you able to configure 2016 hyper-v host (virtual for Azure) with external switch, if you get it successfully, for VMs within hyper-v you need to select that external switch so that they should get IP lease directly from Azure DHCP infra
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Kevin DIT ConsultantAuthor Commented:
I did try the external switch approach in the hope that the exposed network interface from the workstation would pick up an IP address from the Azure DHCP server. However, it appears that only machines that link to an Azure Virtual network are actually served a DHCP address and for some reason when the Hyper-V virtual switch makes a virtual network it does not pass any credentials about it being the same virtual network as the host, so the network interface does not get served with a DHCP address. Seems like a deficiency in the Microsoft Azure model for nested Hyper-V which hopefully they will address.
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MaheshArchitectCommented:
Then for time being you need to set IP manually by creating IP reservation (static) in Azure Virtual network
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Kevin DIT ConsultantAuthor Commented:
This is the solution I had already adopted until Microsoft come up with a way to utilize the DHCP server in Azure Active Directory Domain Services and allow it to be accessed by the nested Hyper-V workstations.
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