This is a fix on server side while solution for client side provided by M$ does not always work out.
Windows DHCP Client always sets the BROADCAST flag in DHCP discovery packets and there are two related options from dnsmasq: dhcp-broadcast and dhcp-authoritative.
- dhcp-broadcast explicitly allows dnsmasq to always use broadcast to communicate with host
- dhcp-authoritative makes dnsmasq the only DHCP server who will not hold strict RFC compliance
During test, it seems either option respectively solved the problem. However, dhcp-authoritative is preferred if network is setup out of one’s own thought.