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-nodes/init-cluster.sh

@@ -0,0 +1,80 @@
+#!/bin/bash
+
+# Talos cluster initialization script
+# This script performs one-time cluster setup: generates secrets, base configs, and sets up talosctl
+
+set -euo pipefail
+
+# Check if WC_HOME is set
+if [ -z "${WC_HOME:-}" ]; then
+    echo "Error: WC_HOME environment variable not set. Run \`source ./env.sh\`."
+    exit 1
+fi
+
+NODE_SETUP_DIR="${WC_HOME}/setup/cluster-nodes"
+
+# Get cluster configuration from config.yaml
+CLUSTER_NAME=$(wild-config cluster.name)
+VIP=$(wild-config cluster.nodes.control.vip)
+TALOS_VERSION=$(wild-config cluster.nodes.talos.version)
+
+echo "Initializing Talos cluster: $CLUSTER_NAME"
+echo "VIP: $VIP"
+echo "Talos version: $TALOS_VERSION"
+
+# Create directories
+mkdir -p generated final patch
+
+# Check if cluster secrets already exist
+if [ -f "generated/secrets.yaml" ]; then
+    echo ""
+    echo "⚠️  Cluster secrets already exist!"
+    echo "This will regenerate ALL cluster certificates and invalidate existing nodes."
+    echo ""
+    read -p "Do you want to continue? (y/N): " -r
+    if [[ ! $REPLY =~ ^[Yy]$ ]]; then
+        echo "Cancelled."
+        exit 0
+    fi
+    echo ""
+fi
+
+# Generate fresh cluster secrets
+echo "Generating cluster secrets..."
+cd generated
+talosctl gen secrets -o secrets.yaml --force
+
+echo "Generating base machine configs..."
+talosctl gen config --with-secrets secrets.yaml "$CLUSTER_NAME" "https://$VIP:6443" --force
+cd ..
+
+# Setup talosctl context
+echo "Setting up talosctl context..."
+
+# Remove existing context if it exists
+talosctl config context "$CLUSTER_NAME" --remove 2>/dev/null || true
+
+# Merge new configuration
+talosctl config merge ./generated/talosconfig
+talosctl config endpoint "$VIP"
+
+echo ""
+echo "✅ Cluster initialization complete!"
+echo ""
+echo "Cluster details:"
+echo "  - Name: $CLUSTER_NAME"
+echo "  - VIP: $VIP"
+echo "  - Secrets: generated/secrets.yaml"
+echo "  - Base configs: generated/controlplane.yaml, generated/worker.yaml"
+echo ""
+echo "Talosctl context configured:"
+talosctl config info
+echo ""
+echo "Next steps:"
+echo "1. Register nodes with hardware detection:"
+echo "   ./detect-node-hardware.sh <maintenance-ip> <node-number>"
+echo ""
+echo "2. Generate machine configurations:"
+echo "   ./generate-machine-configs.sh"
+echo ""
+echo "3. Apply configurations to nodes"