The renormalization conditions in $\phi^4-$theory are given in Eqn. 10.19 of Peskin and Schroeder, are supposed to define the physical mass and the physical couplings. The second condition is fine; calculating the diagram on the LHS, multiplying that by $i$ and setting $s=4m^2,t=u=0$, one can read off the physical coupling $\lambda$.
However, it is not clear to me how is the first equation useful in defining the physical mass $m$. In Eqn. 10.28, the book says that the renormalization condition is $$\frac{i}{p^2-m^2-M^2(p^2)}=\frac{i}{p^2-m^2}+\text{terms regular at} \hspace{0.2cm}p^2=m^2,\tag{a}$$ which is equivalent to$$M^2(p^2=m^2)=0; \hspace{0.3cm}\frac{d}{dp^2}M^2(p^2)|_{p^2=m^2}=0.\tag{1}$$
How is the first condition of Eqn.(1) obtained fom (a)? My problem is that if I put $p^2=m^2$ in (a), the RHS has a singularity. Moreover, what happens to the regular part?
The renormalization conditions are also expressed as $$\Gamma^{(2)}(0)=m^2; \hspace{0.3cm}\Gamma^{(4)}(0)=-\lambda.\tag{2}$$ Why are these relations not used by Peskin?
I'm also having trouble in deriving the second condition. A Taylor expansion of $M^2(p^2)$ about $p^2=m^2$ goes like $$M^2(p^2)=M^2(m^2)+\frac{d}{dp^2}M^2(p^2)|_{p^2=m^2}(p^2-m^2)+...\tag{3}$$ But how to proceed next?