Well this is a DHCP client package. Not sure why it was present on your system. At least something we don’t use. But I guess the DHCP client was trying to get an IP address without success. Therefore you got a link local IPv4 address assigned. Same you could see on a Windows system if no IP could be received from DHCP server. Basically you had a conflicting configuration as your Ethernet was set to STATIC but a DHCP client was installed.
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Thanks for the explanation!
I also bought a decent pico stick now 
The undervolt message does btw. not appear with the LXDE Desktop, only with MATE and XFCe
There seems still something DHCP related left. In Pihole I get the error message that the Raspberry is asking for an IP.
maybe you can share the exact error message. If possible try to copy/past stuff, instead of creating screen prints.
Jep 169.254 is a local link address assigned until a proper IP has been assigned via DHCP or statically, but with such address a device can only connect to the router, in some cases also other LAN devices, but not the Internet.
The framebuffer driver error in dmesg is expected with default server config. With the 16 MiB GPU memory some GPU features are disabled which the driver (which is then not requires anyway) has issues with.
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Sorry, VNC copy/paste does actually not work and I had no Monitor attached.
The exact message is:
[2022-07-15 13:17:24.947 18592M] WARNING in dnsmasq core: not giving name Raspi.Domain to the DHCP lease of 192.168.0.142 because the name exists in /etc/hosts with address 127.0.1.1
[2022-07-15 13:17:24.964 18592M] WARNING in dnsmasq core: not giving name Raspi to the DHCP lease of 192.168.0.142 because the name exists in /etc/hosts with address 127.0.1.1
Simply use SSH 
Who is IP address 192.168.0.142
It seems 192.168.0.142 is the ip address that the DHCP from pihole wants to assign to the RP it is running on.
But you are using static IP correct? And no t DHCP on the DietPi device?
Can you check following file, if the IP address is listed inside and if the MAC address is fitting to your DietPi
cat /etc/pihole/dhcp.leases
Yes, it has always been a static IP.
Just a minute before your post, I deleted three leases for DietPi, every entry with hostname “unknown”.
One of the IPs was the .142.
The leases do not reappear now but it is still asking for an IP.
I really wonder how this could get so crippled, I normally only manage software via dietpi-software.
you could try to restart DNS server and watch the log afterwards for DHCP request to see who is asking for a lease.
pihole restartdns
pihole -t
No new entries in the leases but DietPi still keeps asking for an IP.
This is not what the Warning message is telling you.
WARNING in dnsmasq core: not giving name Raspi.Domain to the DHCP lease of 192.168.0.142 because the name exists in /etc/hosts with address 127.0.1.1
It’s not about assigned an IP address, it’s more that host name Raspi.Domain could not be assigned to a specific IP because this hoste name is already existing inside /etc/hosts
Please assure that there is really no other DHCP client running on the Pi-hole server. dnsmasq shouldn’t try to assign this hostname if it is not doing a DHCP request. You can check via htop if any dhclient, systemd-networkd, dhcpcd, NetworkManager, connmand or any other process is running, which looks network-related.
Also check Pi-hole DHCP settings, probably for some reason it’s own host is somehow stuck there as DHCP client even that it doesn’t doing DHCP requests anymore?
Thanks, I totally misunderstood the message.
It seems my Hue Bridge was kind of crashed but still worked.
After I restarted the Bridge and deleted the DHCP lease which was there again, the error is gone!
Thanks a lot for the help.