Azure install fails in CI: Error: error creating/updating Private DNS Zone Virtual network link

We're seeing frequent private DNS zone creation failures in Azure CI jobs recent two days, the Azure CI jobs have been greatly affected.
https://search.ci.openshift.org/?search=error+creating%2Fupdating+Private+DNS+Zone+Virtual+network&maxAge=48h&context=1&type=build-log&name=&excludeName=&maxMatches=5&maxBytes=20971520&groupBy=job

Such as the following error from https://prow.ci.openshift.org/view/gs/origin-ci-test/logs/periodic-ci-openshift-release-master-ci-4.12-upgrade-from-stable-4.11-e2e-azure-sdn-upgrade/1566852244215697408

level=info msg=Consuming Openshift Manifests from target directory
level=info msg=Consuming Common Manifests from target directory
level=info msg=Credentials loaded from file "/var/run/secrets/ci.openshift.io/cluster-profile/osServicePrincipal.json"
level=info msg=Creating infrastructure resources...
level=error
level=error msg=Error: error creating/updating Private DNS Zone Virtual network link "ci-op-1w80vs6f-7f65d-t2zlz-network-link" (Resource Group "ci-op-1w80vs6f-7f65d-t2zlz-rg"): privatedns.VirtualNetworkLinksClient#CreateOrUpdate: Failure sending request: StatusCode=404 -- Original Error: Code="ParentResourceNotFound" Message="Can not perform requested operation on nested resource. Parent resource 'ci-op-1w80vs6f-7f65d.ci2.azure.devcluster.openshift.com' not found."
level=error
level=error msg=  with module.dns.azureprivatedns_zone_virtual_network_link.network,
level=error msg=  on dns/dns.tf line 13, in resource "azureprivatedns_zone_virtual_network_link" "network":
level=error msg=  13: resource "azureprivatedns_zone_virtual_network_link" "network" 

All OCP versions

https://search.ci.openshift.org/chart?name=e2e-azure&search=error+creating%2Fupdating+Private+DNS+Zone&maxAge=24h&type=build-log
shows 26% of the failed Azure jobs are related to "error creating/updating Private DNS Zone" in the past day. 
3/5 of the failed Azure jobs are caused by this in QE’s CI today. 

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No Azure outage was reported from https://status.azure.com/en-us/status.
No private zone or DNS records quota exceeded was observed.