Hello Rajiv , Welcome to MS Q&A
Diagnostics are not routed through a public network. Our documentation on Azure Monitor Private Link scope states the following:
Logs and metrics uploaded to a workspace via Diagnostic Settings go over a secure private Microsoft channel and are not controlled by these settings*.* https://learn.microsoft.com/en-us/azure/azure-monitor/logs/private-link-design#diagnostic-logs
Please let me know if you have any further questions
kindly accept answer if it helps
Thanks
Deepanshu