Description of problem: When a CNV VM or a busybox workload is deployed via Appset pull model and the Operator "does not equal any of" or "equals any of" is selected, it appears like the workload is not created, and Applicationset under Topology page throws below error:

Error: There are no Argo applications created. Check the following resources and make sure they are configured properly: applicationset placement, gitopscluster, gitopscluster placement, managedclusterset. Also make sure the ApplicationSet feature is enabled if GitOps is deployed to a namespace other than openshift-gitops. 

but after waiting for say 5-6 mins, the workload gets created.

Attaching screecast of the whole deployment flow and it's verification via CLI.

And this issue is easily reproducible for any kind of workload (busybox/CNV VMs).

Version-Release number of selected component (if applicable):

Platform- VMWare


ODF 4.19.0-91.stable
ceph version 19.2.1-210.el9cp (d7ac9a7e698531c972a3567a67da1f0a9a266075) squid (stable)
OCP 4.19.0-0.nightly-2025-06-03-070127
ACM 2.14.0-DOWNSTREAM-2025-06-05-04-29-38 (2.14.0-54)
MCE 2.9.0-212
GitOps 1.16.1 
Virtulization 4.19.0-186
OADP 1.5.0 

How reproducible:

Steps to Reproduce:

1. Deploy a CNV VM or a busybox workload using Appset pull model type and make sure to select "does not equal any of" or "equals any of" Operator and deploy it. Observe the errors under topology and time it takes to actually create the workload.
2. Follow the steps/workloads details from attached screencast.
3.  
4. ...

Actual results: [RDR]  Workloads when deployed using Appset pull model throws error/appears to fail but eventually gets created after ~5mins or so

Expected results: This lag should be avoided. It appears workload deployment did not happen but if waited for long, it actually gets deployed. This isn't the best user-experience considering it's in the workload deployment flow and also appears to be a Regression.

Additional info: