Install

az extension add --name aks-preview
az feature register --namespace "Microsoft.ContainerService" --name "PodSubnetPreview"
az feature list -o table --query "[?contains(name, 'Microsoft.ContainerService/PodSubnetPreview')].{Name:name,State:properties.state}"

terraform init
terraform apply --auto-approve

$resource_group=$(terraform output resource_group)
$aks_name=$(terraform output aks_name)
az aks get-credentials --resource-group $resource_group --name $aks_name

helm repo add ingress-nginx https://kubernetes.github.io/ingress-nginx
helm repo update
helm install ingress-nginx ingress-nginx/ingress-nginx --create-namespace --namespace ingress -f internal-ingress.yaml

kubectl apply -f demo.yaml

References:

• Dynamic allocation of IPs and enhanced subnet support (preview)

Systems in the same virtual network as the AKS cluster see the pod IP as the source address for any traffic from the pod. Systems outside the AKS cluster virtual network see the node IP as the source address for any traffic from the pod.