Settle on v1 setup method. Test run completed successfully from bootstrap to service setup.

- Refactor dnsmasq configuration and scripts for improved variable handling and clarity
- Updated dnsmasq configuration files to use direct variable references instead of data source functions for better readability.
- Modified setup scripts to ensure they are run from the correct environment and directory, checking for the WC_HOME variable.
- Changed paths in README and scripts to reflect the new directory structure.
- Enhanced error handling in setup scripts to provide clearer guidance on required configurations.
- Adjusted kernel and initramfs URLs in boot.ipxe to use the updated variable references.

setup/cluster/coredns/install.sh

@@ -0,0 +1,37 @@
+#!/bin/bash
+set -e
+
+if [ -z "${WC_HOME}" ]; then
+    echo "Please source the wildcloud environment first. (e.g., \`source ./env.sh\`)"
+    exit 1
+fi
+
+CLUSTER_SETUP_DIR="${WC_HOME}/setup/cluster"
+COREDNS_DIR="${CLUSTER_SETUP_DIR}/coredns"
+
+echo "Setting up CoreDNS for k3s..."
+
+# Process templates with wild-compile-template-dir
+echo "Processing CoreDNS templates..."
+wild-compile-template-dir --clean ${COREDNS_DIR}/kustomize.template ${COREDNS_DIR}/kustomize
+
+# Apply the k3s-compatible custom DNS override (k3s will preserve this)
+echo "Applying CoreDNS custom override configuration..."
+kubectl apply -f "${COREDNS_DIR}/kustomize/coredns-custom-config.yaml"
+
+# Apply the LoadBalancer service for external access to CoreDNS
+echo "Applying CoreDNS service configuration..."
+kubectl apply -f "${COREDNS_DIR}/kustomize/coredns-lb-service.yaml"
+
+# Restart CoreDNS pods to apply the changes
+echo "Restarting CoreDNS pods to apply changes..."
+kubectl rollout restart deployment/coredns -n kube-system
+kubectl rollout status deployment/coredns -n kube-system
+
+echo "CoreDNS setup complete!"
+echo
+echo "To verify the installation:"
+echo "  kubectl get pods -n kube-system"
+echo "  kubectl get svc -n kube-system coredns"
+echo "  kubectl describe svc -n kube-system coredns"
+echo "  kubectl logs -n kube-system -l k8s-app=kube-dns -f"