The client is booted into Network and is not managed. The client gets IP address then immediately times out and states "PXE-M0F: Exiting Intel PXE boot ROM."
When I look at the Wireshark Trace, the following is shown:
The client times out because it is not being selected to boot into PXE.
The default boot option needs to be changed from Next device to a pxe option like Dos Managed.
From the console open the PXE config utility. Select the DS tab and change the default boot option to the desired PXE option.