An Azure network security service that is used to protect Azure Virtual Network resources.
Your tests narrow it well: the drops only happen on the path that goes through the firewall's public IPs via DNAT, and direct traffic is clean. That path is also the unusual part of the design. In Microsoft's reference architecture for Application Gateway in front of Azure Firewall, the Application Gateway sends traffic to the backends' private IPs, and a user-defined route on the Application Gateway subnet steers it to the firewall's private IP. DNAT on the public IPs is meant for traffic arriving from the internet, not for hops inside the VNet.
So I'd check two things:
- Firewall health under load. In the firewall's Metrics, chart SNAT port utilization, Firewall health state and Data processed for the period when drops started. Hairpinning App Gateway traffic through public IPs adds translations on every connection, and high SNAT utilization or a degraded health state lines up with "~10% of new connections fail".
- Flow-level evidence. If you have the structured firewall logs in Log Analytics, enable flow trace logging. It records TCP handshake packets (SYN, ACK, RST) so you can see whether the dropped connections are reset or simply time out at the firewall.
To fix it rather than tune around it, move to the private path:
- Point the App Gateway backend pool at the IIS servers' private IPs.
- Add a UDR on the App Gateway subnet for the backend subnet's prefix, with next hop Virtual appliance = the firewall's private IP. Add the matching UDR on the backend subnet pointing back to the firewall, so the return path is symmetric.
- Replace the DNAT rules with network or application rules allowing App Gateway subnet → backend on 80/443.
Test the change on one backend first, during a quiet window.
Did the drops start after traffic grew, or at a fixed point in time with no load change?
If the private path clears the drops, please consider accepting it as the answer. If the metrics look clean and drops continue, let me know and I'll be happy to keep helping.
Reference: