3️⃣ DHCP Server
While in server mode, the wired and wireless interfaces default behaviour now becomes a DHCP server and will automatically hand-out an IP address, gateway, and DNS information to connected clients.
Connecting to a network with a pre-existing DHCP server in this mode should be avoided as it could (will) cause DHCP conflicts.
Be sure to switch back to classic mode before connecting the WLAN Pi to a network with a DHCP server.
Buddy Lab
Connect your WLAN Pi to a buddy's WLAN Pi in classic mode
Which IP does your DHCP client WLAN Pi get?
Now you have a portable, hand-held DHCP server :)
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