Calisto42,
Thank you for the info and reference to the bug report.
So I manually typed in the changes you pasted into your reply above and found one slight change from what got pasted and what the bugreport solution provided. I think the Discourse editor is gobbling up back quotes (aka "back ticks". In the bugreport answer the entire sed command has single back-tick just before the sed and then another back tick at the end just before that final double-quote.
Let me see if I can "fool" the Discourse editor to include that back tick around the sed command:
DNSMASQ_OPTS="$DNSMASQ_OPTS `sed -e s/'.*IN[[:space:]]DS[[:space:]]'/--trust-anchor=.,/ -e s/'[[:space:]]'/,/g $ROOT_DS | tr '\n' ' '`"
That looks better.
This line fixed my DNSMASQ starting up error.
Thank you all for your help.