Public bug reported:

I installed a fresh test cloud in focal. After creating some networks
and subnets, neutron-dhcp-agent complained:

sudo journalctl -u neutron-dhcp-agent -e
Mar 05 11:43:53 network dnsmasq[13211]: failed to load names from 
/var/lib/neutron/dhcp/10ba1f15-651e-4ef6-aced-66e7cf3effad/addn_hosts: 
Permission denied
Mar 05 11:43:53 network dnsmasq[13211]: cannot read 
/var/lib/neutron/dhcp/10ba1f15-651e-4ef6-aced-66e7cf3effad/host: Permission 
denied
Mar 05 11:43:53 network dnsmasq[13211]: cannot read 
/var/lib/neutron/dhcp/10ba1f15-651e-4ef6-aced-66e7cf3effad/opts: Permission 
denied

dnsmasq runs as user nobody and needs to read several files under
/var/lib/neutron/dhcp/<guid>

/var/lib/neutron/dhcp and /var/lib/neutron/dhcp/10ba1f15-651e-4ef6-aced-
66e7cf3effad have mode 750

Changing UMask=0027 to UMask=0022 in /lib/systemd/system/neutron-dhcp-
agent.service, deleting /var/lib/neutron/dhcp and restarting neutron-
dhcp-agent solves the problem.

sudo journalctl -u neutron-dhcp-agent -e
Mar 05 13:44:49 network dnsmasq-dhcp[15266]: DHCP, static leases only on 
10.101.3.0, lease time 1d
Mar 05 13:44:49 network dnsmasq-dhcp[15266]: DHCP, static leases only on 
10.101.2.0, lease time 1d
Mar 05 13:44:49 network dnsmasq[15266]: read 
/var/lib/neutron/dhcp/10ba1f15-651e-4ef6-aced-66e7cf3effad/addn_hosts - 3 
addresses
Mar 05 13:44:49 network dnsmasq-dhcp[15266]: read 
/var/lib/neutron/dhcp/10ba1f15-651e-4ef6-aced-66e7cf3effad/host
Mar 05 13:44:49 network dnsmasq-dhcp[15266]: read 
/var/lib/neutron/dhcp/10ba1f15-651e-4ef6-aced-66e7cf3effad/opts


neutron-dhcp-agent:
  Installed: 2:16.0.0~b2~git2020020712.d5b33ffc77-0ubuntu1
neutron-linuxbridge-agent:
  Installed: 2:16.0.0~b2~git2020020712.d5b33ffc77-0ubuntu1

** Affects: neutron (Ubuntu)
     Importance: Undecided
         Status: New

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https://bugs.launchpad.net/bugs/1866187

Title:
  dnsmasq needs access to /var/lib/neutron/dhcp

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