Description:
When the system finishes booting the hostname is "localhost", not the dhcp server assigned hostname.
In the journal, the logs start with localhost, there's one line with the server-assigned hostname, then it goes back to being localhost.
Restarting the network service will set the hostname to what the server assigns.
This (boot finishes with hostname=localhost and restarting the service fixes) happens both with the dhcpcd@eth0 service, or with netcfg.service.

I checked this bugtracker and freedesktop and can't find anything about hostname.

I need to pxe boot the same image on multiple clients and this is the last thing blocking me.

Additional info:
* package version(s)
Name : dhcpcd
Version : 5.6.2-1

Name : systemd
Version : 195-2

Name : netcfg
Version : 3.0-1

* config and/or log files etc.


Steps to reproduce:
Set up dnsmasq to assign hostnames:

/etc/dnsmasq.conf
#something like
interface=eth0
dhcp-range=192.168.10.101,192.168.10.140,4h
dhcp-host=01:23:45:67:89:ab,host-3 #client's mac address

boot client


Here's a portion of the boot journal:
Nov 02 19:15:43 localhost systemd[1]: Got D-Bus request: org.freedesktop.DBus.Local.Disconnected() o
Nov 02 19:15:44 localhost kernel: e1000e 0000:00:19.0: irq 40 for MSI/MSI-X
Nov 02 19:15:44 localhost kernel: e1000e 0000:00:19.0: irq 40 for MSI/MSI-X
Nov 02 19:15:44 localhost kernel: IPv6: ADDRCONF(NETDEV_UP): eth0: link is not ready
Nov 02 19:15:46 localhost kernel: e1000e: eth0 NIC Link is Up 1000 Mbps Full Duplex, Flow Control: R
Nov 02 19:15:46 localhost kernel: IPv6: ADDRCONF(NETDEV_CHANGE): eth0: link becomes ready
Nov 02 19:15:46 localhost dhcpcd[253]: version 5.6.2 starting
Nov 02 19:15:46 localhost dhcpcd[253]: eth0: sending IPv6 Router Solicitation
Nov 02 19:15:46 localhost dhcpcd[253]: eth0: sendmsg: Cannot assign requested address
Nov 02 19:15:47 localhost dhcpcd[253]: eth0: broadcasting for a lease
Nov 02 19:15:47 localhost dhcpcd[253]: eth0: offered 192.168.10.120 from 192.168.10.1
Nov 02 19:15:47 localhost dhcpcd[253]: eth0: acknowledged 192.168.10.120 from 192.168.10.1
Nov 02 19:15:47 localhost dhcpcd[253]: eth0: checking for 192.168.10.120
Nov 02 19:15:50 localhost dhcpcd[253]: eth0: sending IPv6 Router Solicitation
Nov 02 19:15:52 localhost dhcpcd[253]: eth0: leased 192.168.10.120 for 14400 seconds
Nov 02 19:15:52 IC-1 dhcpcd[253]: forked to background, child pid 282
Nov 02 19:15:53 localhost netcfg-daemon[161]: :: ethernet-dhcp up [done]
Nov 02 19:15:53 localhost systemd[1]: Received SIGCHLD from PID 161 (netcfg-daemon).
Nov 02 19:15:53 localhost systemd[1]: Got SIGCHLD for process 161 (netcfg-daemon)
Nov 02 19:15:53 localhost systemd[1]: Child 161 died (code=exited, status=0/SUCCESS)
Nov 02 19:15:53 localhost systemd[1]: Child 161 belongs to netcfg.service
Nov 02 19:15:53 localhost systemd[1]: netcfg.service: main process exited, code=exited, status=0/SUC
Nov 02 19:15:53 localhost systemd[1]: netcfg.service changed start -> exited
Nov 02 19:15:53 localhost systemd[1]: Job netcfg.service/start finished, result=done
Nov 02 19:15:53 localhost systemd[1]: Started Netcfg multi-profile daemon.
Nov 02 19:15:53 localhost systemd[1]: Starting Network.
Nov 02 19:15:53 localhost systemd[1]: network.target changed dead -> active
Nov 02 19:15:53 localhost systemd[1]: Job network.target/start finished, result=done
Nov 02 19:15:53 localhost systemd[1]: Reached target Network.