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For Anyone else finding this through a web search:

https://micoolpaul.com/2022/07/20/configuring-pfsense-dynamic-dns-with-azure-dns/
Follow the first few steps in this article up to Configuring the PfSense Firewall  (do everything before that step).

After that go to your opnsense ddclient settings and set the following
Client Type:  Native
Select Service Microsoft Azure
YOUR HOSTNAME:  should ONLY be the hostname not the FQDN so - "test" not "test.com"
Username: Application Client ID for your Azure  AD App Regristation.
Password:  Secret Value
ResourceID:  is the path to your dns zone like this:
/subscriptions/xxx-xxx-xxx/resourceGroups/<resource group name>/providers/Microsoft.Network/dnsZones/<your zone name>

I hope this helps someone in the future.

Anyone have any thoughts? 

I have been trying to get the Dynamic DNS setup with Azure DNS for a few hours.  I can see the login attempts from the service credential that I created but it never updates the record.  I have tried a ton of different settings with no luck.  My google-fu has ran out on this one. 

The logs are no help even with verbosity enabled.

I have tried different ip lookup services and I can see the traffic/request going out successfully.

This is all I see in the logs:

2025-04-02T10:05:14-05:00    Notice    ddclient    Account xxx [azure - Azure DNS] not modified   
2025-04-02T10:05:12-05:00    Notice    ddclient    Account xxx [azure - Azure DNS] executing   
2025-04-02T10:05:12-05:00    Notice    ddclient    Account xxx [azure - Azure DNS] uses Azure for service

Is there another log I can be looking at? 
Is there a way to debug this? 

I have been messing with this for a few hours.  So what is it I need to do to get the record to update?

Are you saying if my host name is "test" and my domain name is test.test.com my hostname entry in the os-ddclient should be "test.test.com"?