Okey, this is getting a bit confusing now. I've changed from the FQDN to the ip-address of the TFTP/WDS server, same result as before. I will go through all policies and zones to make sure I haven't messed things up.
Yes, it is a bit confusing. Are you able to test this set-up with the PC/laptop connected to this subinterface? You can initiate TFTP by connecting to the TFTP server with the tftp32 or similar software from the laptop GUI. This, at least, will prove policy and Layer 3 correct operation.
Hmm, okey, I've now been able to get a file from the TFTP/WDS server by putting my client on the PXE client subnet;
C:\temp>tftp -i vr-deploy.invmgt.wan get Boot\x64\wdsmgfw.efi
Transfer successful: 1007968 bytes in 2 second(s), 503984 bytes/s
This would mean that the communication between the different subnets is working in regards of TFTP. I took some time though for the connection to be established, the PXE-032 error I get when PXE session is started might emply there's a timing issue?
I would attempt to port mirror the traffic off your switch and wireshark it to see what is actually happening; if it's taking a long time to actually make a connecton you could easily be hitting the default timeout of 300 if that is still present in your configuration.
after running a Wireshark capture I can tell the DORA process isn't working, I do get a Discover, Offer and a ACK but no Request. Could it be that I need to setup IP helper on the actual VLAN present at my Cisco switches?
IP helper should be placed only at your Layer 3 boundary when you actually leaving you subnet. So you talking to the DHCP server (Palo interface) it just weird why the client is not requesting ip address after offer. Post the dora pcap screenshot, please.
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