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VMs are supported as production hosting environment
It is not clear from the docs that using Consul DNS name resolutions, that VMs in a virtual or physical network are a supported production environment. There should be an article here https://docs.dapr.io/operations/hosting/ showing this option. The Self hosted option is for single machine only.
In this article should also link to this consul demo here https://www.youtube.com/watch?v=Cv-8e5wV44g&t=2886s At the same time the Consul DNS component https://docs.dapr.io/reference/components-reference/supported-name-resolution/setup-nr-consul/ should also link to this video in the references link at the end.