This seems to be happing only in OpenShift GitOps 1.1.2.
If a user decides to create additional instances of Argo CD that are managed by the cluster instance of Argo CD in the "openshift-gitops" namespace, the "Application" responsible for the new Argo CD instance now gets stuck in "OutOfSync".
This worked fine with OpenShift GitOps 1.1.0 and 1.1.1. It seems the issue is to do with the "argocd-default-cluster-config" secret. This instance of Argo CD was deployed into a namespace called "argocd", so I assume that is part of the secret name. I have attached screen shots showing the message.
I have also created a repository that can be used to duplicate the issue:
I wouldn't consider this a blocker, since this new Argo CD instance does get deployed, but it is annoying to see it constantly displayed as "OutOfSync".