Correct me if I’m wrong, but I believe you are mixing up the terms of CNAMES and subdomains a bit.
In case you are looking for a subdomain setup for WordPress Multisite: Yes this is possible:
The sites in a network have different URLs. You can choose one of two
ways for the URL to specify the site:-Each site has a different subdomain. For example:
site1.example.com, site2.example.com
.-Each site has a different path. For example:
example.com/site1, example.com/site2
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