My Question about DHCP over VPNs was put on hold for being off topic, but it's on topic

Question

How are VPN Clients given IP addresses when they connect to VPN Routers such as VyOS? (How do Virtual IP Address Pools fit in?)

• It's about theory of protocols used to operate a network
• Can we agree that VPNs aren't really used in home networking? (You know besides Network Engineers practicing for production networks.)
• DHCP is basically layer 3 with a little layer 2 involved via ARP.
• VyOS Router which is Enterprise Class/has paid support options.

(Note on my original post I avoided mentiong VyOS, because I was trying to talk generically since it was more of a theoretical concept that I wanted clarification on. Plus the vocabulary/concept is applicable to multiple vendors, I edited the post to specify that VyOS is the real product I'm inquiring about.)

Answer 1

I reopened your question after your edits. You have a couple of misconceptions:

1. Can we agree that VPNs aren't really used in home networking? (You know besides Network Engineers practicing for production networks.)

   That is incorrect. Many home users use VPNs

2. DHCP is basically layer 3 with a little layer 2 involved via ARP.

   That is incorrect. DHCP is not layer-3, and it has nothing at all to do with ARP.