Port 53 is for DNS, DHCP use UDP port 67 and 68. Once you have configured DNS server properly, you have to configure client computer's (Linux, Windows) NIC to obtain IP address automatically and then clients will trigger DHCP request to available DHCP server available on network.
The option is available where you put IPs manually.
VM doesn't use hardware MAC unless you set it or using passthrough.
VMware mac would be 00:50:56 or 00:2c:
And yes, just set the NIC to DHCP and have your DHCP configured correctly and it should work.
Make sure your vLAN info is correct in vSwitch.