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After Istio CNI Plugin installation, Cilium CNI is broken and pod's can't be started #38794

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Description

Bug Description

Hi, is Istio CNI plugin compatible with Cilium kube-proxy free setup?

I ve enabled DNS proxying and after that all my pods are starting to fail with error Failed to execute: iptables-restore --noflush errors. ; in istio-init containers.

Then I tried to enable CNI plugin via --set components.cni.enabled=true . I could see that CNI daemonset is running on all the nodes. However, whenever I create a pod with injection enabled/disabled, pods are failing with

Warning  FailedCreatePodSandBox  1s    kubelet            Failed to create pod sandbox: rpc error: code = Unknown desc = failed to setup network for sandbox "1d364156d98e1eb7f6ab03765b8fff02474ab17dd8c139e67b015ad08ee06f2a": plugin type="istio-cni" name="istio-cni" failed (add): netplugin failed but error parsing its diagnostic message "2022-05-08T19:56:33.418196Z\twarn\tOS CA Cert could not be found for agent\n": invalid character '-' after top-level value

or 

Warning  FailedCreatePodSandBox  2s    kubelet            Failed to create pod sandbox: rpc error: code = Unknown desc = failed to setup network for sandbox "7ec243813ed979c2799a28160a4d9c4176c5ad8183ce5f7a79eb4bcd6ba4816c": plugin type="istio-cni" name="istio-cni" failed (add): decoding version from network config: invalid character '-' after top-level value

Did anyone have the same issue before?

Setup:

Vanilla k8s with cilium installed via helm install cilium cilium/cilium --version 1.11.4 --namespace kube-system --set ipam.mode=kubernetes --set kubeProxyReplacement=strict --set k8sServiceHost="my.api.com" --set k8sServicePort="6443" --set hostServices.hostNamespaceOnly=true

Thank you

Version

istioctl version
client version: 1.13.3
control plane version: 1.13.3
data plane version: 1.13.3 (1 proxies)

kubectl version --short
Client Version: v1.22.1
Server Version: v1.23.6

Additional Information

Istio CNI pod logs - https://paste.opendev.org/show/bXCRYC98CGoUIiLXKu01/

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