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Records the design decision (one dnsmasq instance per session, not per network -- avoids the NXDOMAIN-fallthrough problem a per-network design would have hit for multi-network containers) and the three real bugs found while building it (dnsmasq's --pid-file needing daemonize mode, its default privilege drop breaking $XDG_STATE_HOME access, and REFUSED AAAA answers breaking getaddrinfo()-based tools), matching the level of detail already recorded for the other networking features in this document and in CLAUDE.md's own file-by-file reference. Co-Authored-By: Claude Sonnet 5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01Gv3s5jckJKzh6JkMoi2Akz