Hi mulbzh,
You do not need to manually assign any special permissions to your dedicated account within the DNS management console. As long as the account configured in the DHCP console is a standard domain user, it automatically qualifies as an Authenticated User, which inherently possesses the "Create All Child Objects" permission on your Active Directory-integrated DNS zones. When the DHCP service uses this dedicated credential to register a new A or PTR record, that account becomes the object owner within the DNS Access Control List, securing full control to update or delete that specific record throughout the lifetime of the DHCP lease.
You must ensure this dedicated account is completely excluded from the DnsUpdateProxy Active Directory security group. Placing the account into that group will strip the security ACLs from any DNS records it creates, leaving your environment vulnerable to name hijacking. Because this new dedicated credential does not own the pre-existing DNS records previously registered by the individual clients or the DHCP server's machine account, the server will log Event ID 31031 access denied errors when attempting to update them. To resolve this, you will need to manually delete the legacy DNS records from the console so the DHCP server can seamlessly recreate them under the new account's ownership as clients renew their network leases.
Hope this answer brought you some useful information. If it did, please hit “accept answer”. Should you have any questions, feel free to leave a comment.
VP