I have encountered a similar issue with the Ubuntu installer.

It turned out that the DHCP server was providing DNS server information,
but the DNS server itself was not reachable.

It appears that dhclient does some verification of the DHCP settings
offered, and rejects the IP address if the configration is invalid (e.g.
the nameserver is not reachable).

Unfortunately, there is no logging which indicates what settings
dhclient is verifying and which configuration error causes dhclient to
reject the IP address being offered.

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https://bugs.launchpad.net/bugs/1785768

Title:
  [bionic] net-installer dhcp client fails with DHCPDECLINE

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