jsoconno thank you for the feedback. Yes, we did recently discover this same issue and are working to resolve. For now, if you know you have custom DNS servers set on the VNets this policy will apply to, you can add the following line to the properties in the deployment section:
"dhcpOptions": "[reference(resourceId('Microsoft.Network/virtualNetworks', parameters('vnetName')), '2020-07-01', 'Full').properties.dhcpOptions]",
Unfortunately, doing this causes the deployment to fail when there are no dhcpOptions set, so make sure to scope accordingly. We expect to come up with a solution soon that allows one policy to cover both scenarios. If you happen to think of a solution before we get a chance, feel free to submit a pull request to our repo.
Thanks again for reading!