I'm currently staging a PAN-VM (8.1.3 KVM) and have hit an issue.
I commit and immediately after I test pings from the CLI to: 22.214.171.124 sourcing from the outside interface and its sucessfully. I then ping google.com (either continuouly or specifying a ping count of 5) and it works 100%. However, after a few moments issuing new pings to google.com fail and I get the "ping: unknown host google.com". Further, I observe the PAN FW can no longer contact the licensing server or palo alto update server as it relies on successful DNS lookups. I turn my attention back to pings to the IP 126.96.36.199 and it doesn't skip a beat. 100% success.
Any further commits and immediately pings to google.com work again (continuous or count specified ping) will yield 100% success. However, as soon as I kill the continuous pings (or use count specified ping) and wait a moment, the pings to domain names (google.com) fail again.
@JohnRoberts: Is the issue still persistent?
I would suggest to have a log in the traffic log, if you got any dns response packets, while you experienced the issues.
Nonetheless, the current preferred PAN-OS release is 8.1.8.
If the issue is persitant after upgrading, please test, if other dns resolvers work better for your environment
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