--dhcp-no-override description from dnsmasq man page:
Disable re-use of the DHCP servername and filename fields as
extra option space. If it can, dnsmasq moves the boot server and
filename information (from dhcp-boot) out of their dedicated
fields into DHCP options. This make extra space available in the
DHCP packet for options but can, rarely, confuse old or broken
clients. This flag forces "simple and safe" behaviour to avoid
problems in such a case.
It seems some virtual network card ROMs are this old/buggy so let's add
--dhcp-no-override as a workaround for them. We don't use extra DHCP
options so this should be safe. The option was added in dnsmasq-2.41,
which becomes the minimum required version.