I have the following DNS entries for the root domain example.com:
*CNAME record pointing tofoo.comdummy.apiTXT record containing the valuedummy
When I try to resolve bla.foo.com then it correctly resolves to the CNAME entry, but when I try to resolve api.foo.com, the DNS server fails to resolve. This would make sense to me if there was a TXT entry for api.foo.com, but in this case there is only a TXT entry for the more specific domain dummy.api.foo.com.
Is it expected that a more specific domain overrides a wildcard match even if it's only a partial match, like in this case? And is there any way to fix this other than adding an explicit CNAME record for api?
For context: this is happening on Azure DNS and specifically _acme-challenge TXT records that are being created for Let's Encrypt.