The client times out because it is not being selected to boot into PXE.
The default boot option needs to be changed from Next device to a pxe option like Dos Managed.
From the console open the PXE config utility. Select the DS tab and change the default boot option to the desired PXE option.
DS Console > Tools > PXE Configuration > DS Tab > Default boot option
Deployment Solution 6.8–6.9