If this would be a bug (which I suggest it isn't), you would have to address this with dnsmasq development, as Pi-hole is embedding dnsmasq as DHCP server.
RFC 951 section 3 (Packet Format) requires the boot file name (as provided by option dhcp-boot) to be a null terminated string.
RFC 2132 section 9.4 ff.(TFTP server name and Bootfile name) define the respective parameters as a string of characters. RFC 2132 section 2 (BOOTP Extension/DHCP Option Field Format) allows usage of null terminated strings and further obligates clients to be able to deal with strings regardless if they are null terminated or not.
As far as RFCs are concerned, your observation doesn't constitue a bug.
It may indicate a failure of your client to conform to RFC 2132's requirement to corrrectly handle null terminated strings.
But since these are proven and well-known protocols, I suspect a configuration error to be behind this.
As you seem to use a separate DHCP/BOOTP server at 10.10.3.2 to enable PXE booting, you want to make sure that is reachable at boot time and that a proper pxelinux.0 file is indeed located in that machine's root directory.
Appreciate the insights and thoroughness of your response. After spending hours trying to get validation that the new configs were being sent out via dnsmasq - my PXE boot still isn't happening successful. I'll continue with the premise that null characters for those two options should be handled appropriately by the clients and chase other configurations to resolve my issues.