It is known that if $D$ is a bounded domain in $\mathbb R^n$, $n \geq 2$, with $\partial D \in C^2$ then the Dirichlet problem $$ \begin{array}{rl} \Delta u & = 0 \quad \text{in $D$}, \tag{1}\\ u|_{\partial D} & = \varphi \end{array} $$ has a classical solution for any $\varphi \in C(\partial D)$, i.e. there exists $u \in C^2(D) \cap C(\overline D)$, satisfying (1).
Consider now the following Dirichlet problem: $$ \begin{array}{rl} \Delta u + v(x)u & = 0 \quad \text{in $D$,} \\ u|_{\partial D} & = \varphi, \tag{2} \end{array} $$ where $v \in C(\overline D)$. Is it true that problem (2) has a classical solution for any $\varphi \in C(\partial D)$? If not, what is the minimal requirement on smoothness of $v$ for existence of classical solution? Is the requirement $v \in C^\infty(\overline D)$ sufficient?