Do I require vnet integration for private outbount traffic - Azure API management

I'm trying to have good understanding of Azure vnet integration.

I want to deploy an API management service in Azure and I have to choose a SKU. I'm wondering if vnet integration is require for private outbount trafic ?

For instance, I have a backend vm in a vnet. Does the traffic have to go through internet if I do not use vnet integration ?

I deployed basic api management service, I can create private endpoint but this is only for inbound trafic right ?

Thanks,

I can create private endpoint but this is only for inbound traffic right?

Yes, a private endpoint will give a private IP address for inbound traffic only. Use private endpoints and regional VNet integrations in two separate subnets if you need both inbound and outbound traffic.

Currently, Private Endpoints are not supported for the Outbound traffic as the Networking model "Private endpoint" is in preview stage.

You can see the below table for the supported networking models for the types of networking traffic based on usage scenarios given by Microsoft in this Doc:

Refer to this MS Doc regarding the VNet Integration & Private Endpoint for different types of Networking Traffic types.