DHCP ignore unknown or what is "dhcp.hosts"

Expected Behaviour:

In pihole v5 I had set a bunch of static ip adresses for all our devices (pcs, servers, tools with ethernet) within a dnsmasq.conf (Link to related question).

I had set Ignore unknown DHCP clients (with dhcp-ignore=tag:!known) in the conf files.

I wanted to allow a MAC for dynamic leases I set a line with only the MAC address like this: dhcp-hosts=00:20:e0:3b:13:af

Actual Behaviour:

I want to recreate this with pihole version 6.

The setting Ignore unknown DHCP clients shows

If this option is set, Pi-hole ignores all clients which are not explicitly configured through dhcp.hosts. This can be useful to prevent unauthorized clients from getting an IP address from the DHCP server.
It should be noted that this option is not a security feature, as clients can still assign themselves an IP address and use the network. It is merely a convenience feature to prevent unknown clients from getting a valid IP configuration assigned automatically.
Note: When this feature is enabled you will need to configure new clients manually in dhcp.hosts before they can use the network.

So I do not understand what dhcp.host is and did not find a helpful answer when searching online.
Is this a file, is this another setting in the pihole interface, or is this the Static DHCP configuration further down on the same settings page?

If I want to allow a MAC for dynamic leases should I have a line with only the MAC address like this: 00:20:e0:3b:13:af(This is accepted in the interface.)

So as fair as I gather dhcp.hosts means the sum of all known clients to the dhcp server:

The list of clients in Static DHCP configuration further down on the same page.
Also includes entries from dnsmasq style .config or list files [1].
I do not know how /etc/hosts entries are handled.

Also lines with only a mac ( 00:20:e0:3b:13:af) in Static DHCP configuration work. The pc will get answers and an IP on a DHCP request (if there are some available in the IP range stated on the top of the page)

[1] like
/admin/settings/all misc.dnsmasq_lines with dhcp-hostsfile=
or
/admin/settings/all misc.etc_dnsmasq_d Enabled
(additional dnsmasq configuration files from /etc/dnsmasq.d/)

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