You can definitely put a DHCP server on the far end and that's what documentation recommends. Or, swap to a switch that supports DHCP server itself. But the relay design works too. Is it supported per documentation? Well, that's another matter that I cannot address. The SSID you have configured as the "Clients wired directly to Meraki access points" under the network wide page is the VLAN the repeater's eth port will be mapped to. So, if that SSID is tagged with a VLAN ID traffic on the repeater eth will be on that VLAN. If the SSID is untagged then it will use whatever the gateway side AP's native VLAN is per the switch trunk port it's connected to. So, if you use a dedicated SSID for this mesh link purpose you might consider editing the config and have it tagged for a specific VLAN to ensure the mesh link is on the intended transit VLAN. But this also brings into question how you want the switch mgmt IP to function. This diagram in documentation shows VLAN 20 being the mesh SSID VLAN and hence the repeater side switch is on VLAN 20 for its mgmt IP and its "transit" VLAN SVI for the next hop back to the MX. Why documentation shows that switchport being a trunk, native 20, allow 20 I'm not sure. That's just the same as access VLAN 20. And, the repeater eth port isn't a trunk anyway in that diagram. If you want a unique switch mgmt VLAN different from the mesh/transit VLAN then you need to have Support enable multi-VLAN mesh. And the diagram here covers this design. In your case Support has already enabled multi-VLAN mesh per your Support case. I also have a slide of this topology with more detailed config bits than official documentation. This is exactly what I have running in my lab today. So I would build this out link by link and make sure each step works. When you bring up the repeater and switch ensure the switch gets an IP (or static) and you can ping back to the MX SVIs. The MX should be able to ping all the SVIs on the switch assuming you have the static routes in place on the MX. If that all works maybe first try a wired client on the switch and make sure it can get an IP via relay back to the MX. If that's not working no reason to jump to adding APs on that far end as something isn't configured correctly.
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