When I deploy istio vmintegration using this guide: https://istio.io/latest/docs/setup/install/virtual-machine/ to a vm that has preinstalled consul and dnsmasq the consul dns stops working, so I cannot use dns to resolve consul addresses. external dns works fine.
One thing is if the config is not working on the vm and I start the istio, the vm dns does not work at all. Stopping istio service does not resolve the issue. Only way to resolve is to reboot the server.