Watchguard BOVPN to Azure

Hi all!

I have a Watchguard 12.5.1 (Feature key expired for this customer)

They have a BOVPN to Azure using the Watchguard BOVPN Interface, setup following this guide

https://www.watchguard.com/help/docs/help-center/en-US/Content/en-US/Fireware/bovpn/manual/bovpn_vif_static_routing_azure.html

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So here's the layout:

Azure BOVPN UK South

10.100.1.0/24 - Servers

Azure BOVPN UK West

10.101.1.0/24 - Servers

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Watchguard in Datacenter - 10.10.10.0/24

So in the Watchguard BOVPN I have only the one route for the required azure region instance which is to the Server network as a route.
This all works fine, onsite from a machine i can reach the Azure domain controllers via RDP, Ping and do nslookup on them.

When I use the Watchguard conditional DNS Forward and only have the azure servers tied to clientdomain.com it refuses to resolve it at all. (This works fine when only using the legacy onsite server)
If i set the DNS to azure directly on a server it works fine as well.

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So i must be missing something on the Watchguard. But I don't see any blocked traffic, and i'm totally lost.