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I ran in to same issue when deploying VCSA 6.5 in lab and while researching came over to this thread.
Couple of things which I wanted to share. Quick Note , I dont have any DNS server setup in my lab. I agree we definitely need to have DNS in Production deployments but I have never used DNS for VCSA in Lab
- Out of many trial runs one of them was to specify the DNS Server IP as itself (i.e. same IP as VCSA IP. In my case it is 10.1.1.49) and what do I see , it worked perfectly fine

- Additionally I also tried to use DHCP to assign IP to my VCSA and leave FQDN field empty as it automatically takes as IP and it works fine as well.(My DHCP server doesn't give any DNS details)
- For some strange reason it causes issue with static IP hence I tried DNS server as its own IP
Hope this helps , Keep Sharing !!!!