I write the message also here, because r49252 breaks things in a nasty way for anybody who does trunk sysupgrade with settings preserved.
Bug report: https://dev.openwrt.org/ticket/22271
r49252 breaks things in a major way in a sysupgrade with settings preserved, as dnsmasq does not start and DNS and DHCP do not work.
If a router is flashed with a new firmware with revision >= 49252, it will expect to find user "dnsmasq" in /etc/password and /etc/shadow as well as group "dnsmasq" in /etc/group. If those are not found, dnsmasq does not start and all connectivity breaks down.
root@OpenWrt:~# logread | grep dnsm
Wed Apr 27 11:27:52 2016 daemon.crit dnsmasq[2753]: unknown user or group: dnsmasq
Wed Apr 27 11:27:52 2016 daemon.crit dnsmasq[2753]: FAILED to start up
...
Wed Apr 27 11:28:11 2016 daemon.info procd: Instance dnsmasq::instance1 s in a crash loop 6 crashes, 0 seconds since last crash
I fixed my own router by manually copying /rom/etc/passwd, /rom/etc/shadow and /rom/etc/group to /etc
EDIT: other possible fixes:
1) use "firstboot" command to reset the router, or select Reset in Luci.
2) manually edit those three files and add the lines shown in comment 1 of bug #22271
EDIT:
the problem has been fixed by r49276. Flashing a new 49276+ firmware will fix the problem.
(Last edited by hnyman on 1 May 2016, 13:39)