Cannot Connect To SQL Within Azure Network

Cannot Connect To SQL Within Azure Network

I am having a real hard time establishing SQL connection between servers
within a Azure network. The really odd thing is that I can connect to SQL
from my home machine which is outside the VM network. It seems like some
type of network issue from within the VM domain which I have not been able
to identify yet.
My configuration is as follows:
I have three VM's (Active Directory, Sql Server, and an App Server)
I am trying to establish SQL connection from app server to sql server
Both VM's Windows Server 2012
All servers are on the same azure network, affinity group, domain
All servers connected to the domain and have IP's
I can see DNS is resolving because I can ping the sql server from the app
server using the sql server's computer name
I created Firewall rules allowing in/out on port 1433 on both servers
SQL Server is listening on the default port because of this command
executed on the SQL Server (i'm not understanding the 0.0.0.0 IP though
which may be a problem) (I can connect from home so I think this is ok)
netstat -an | find ":1433"
TCP 0.0.0.0:1433 0.0.0.0:0 LISTENING
TCP [::]:1433 [::]:0 LISTENING
I created public & private endpoints on SQL for default sql port 1433
I can actually connect to SQL Server from my home machine
I have temporarily turned off firewalls on both servers
tracert from the app server looks like this.
tracert spsql01
Tracing route to spsql01 [10.0.0.7]
over a maximum of 30 hops:
1 * * * Request timed out.
2 * * * Request timed out.
3 * * * Request timed out.
4 5 ms <1 ms 1 ms spsql01 [10.0.0.7]
Trace complete.
On the App Server i create a connection.udl file to test the connection to
my SQL Server but it never passes the connection test.