Multicast support in Wireguard

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Wireguard does not support multicast. You need to add GRE for that.

Technically, you can enable multicast on a wireguard interface, and it will send multicast traffic out on the interface just fine, but you can only send it to a single peer. This is only useful in some specific use cases, for example if you want to proxy mdns requests over a point to point wireguard link with avahi daemon with it's mdns reflector feature.
Command to enable it (replace wg0 with your wireguard interface name):
ip link set dev wg0 multicast on

Also, add the required multicast range/address to the allowedIPs of your peer you want to send those multicast packets to.