So here is my scenario that I am trying to implement and need some help.
I have two VENT one for Virtual machine and another for Storage account. Both VNET have been peared successfully. Storage account have been disable public access and has Private Link enabled with Private DNS zone.
Now when I do nslookup on storage account from VM(in different network then storage account) it returns the public ip address and my understanding is I should be getting the private IP address which have been assigned in the Private DNS zone.
Am I incorrect with my understanding or am I supposed to do something extra which I haven't done.
You should be getting private IP addresses. Have you verified that both VNets are linked to the private DNS Zone? Go to the Private DNS Zone in the Azure portal and verify the proper VNets are linked in "Virtual network links"