Description of problem:

In an environment with a Hub cluster with ACM operator installed and a separate hosting cluster used for hosted control planes, if a managed cluster is added to ACM that is also present in the hosting cluster's managed clusters, the labels are conflicting.

For example, on the ACM Cluster if I add a label called "test" on a Hosted Cluster's managed cluster object

apiVersion: cluster.open-cluster-management.io/v1
kind: ManagedCluster
metadata:
  annotations:
    import.open-cluster-management.io/hosting-cluster-name: test
    import.open-cluster-management.io/klusterlet-deploy-mode: Hosted
    open-cluster-management/created-via: hypershift
  creationTimestamp: "2025-08-06T13:10:01Z"
  finalizers:
  - managedcluster-import-controller.open-cluster-management.io/cleanup
  - managedclusterinfo.finalizers.open-cluster-management.io
  - open-cluster-management.io/managedclusterrole
  - cluster.open-cluster-management.io/api-resource-cleanup
  - managedcluster-import-controller.open-cluster-management.io/manifestwork-cleanup
  - cluster.open-cluster-management.io/resource-cleanup
  generation: 25
  labels:
    test: yes

This Label will NOT be propagated to the managed cluster object on the Hosting cluster. The issue is that the cluster claims on the Hosted Cluster will continuously add and delete the generated cluster claim "test." 

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

2.13.2

How reproducible:

Steps to Reproduce:

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Actual results:

Expected results:

Additional info:

They are using this cluster claims for automation with ACM Policies, but the inconsistently is causing our policies to flap. In order to get around this issue, one will have to manually edit the managed cluster labels on both the ACM cluster and Hosting cluster.