The metadata.xml for dnsmasq describes the dhcp USE flag like this: <flag name='dhcp'>Enable support for reading ISC DHCPd lease files</flag> There is no such support. There used to be, but dnsmasq's CHANGELOG says it went away for good in 2.46. What the dhcp USE flag does is turn on HAVE_DHCP which is defined, in config.h, only to control whether dnsmasq's own DHCPv4 server gets built. Nothing to do with reading ISC lease files at all. Reproducible: Always Steps to Reproduce: Confirmable by reading metadata.xml, CHANGELOG, and src/config.h
This was fixed awhile ago.