Situation: The client enabled his DHCP serer on Windows 2012 R2. However, it shows 169.254.auto IP address as DHCP server name.
Troubleshooting: There two NICs on the server. One of them doesn’t have statics IP address and it uses auto IP address 169.254.x.x. When the DHCP was enabled, it takes 169.245.x.x as DHCP server name.
Resolution is disabling the second NIC.
That fixes the problem.