Cluster-scoped GitOps instances are not able to establish a watch on  the Project.project.openshift.io API and will log an error when trying to do so such as the following:

time="2021-11-17T15:33:21Z" level=info msg="Failed to watch Project.project.openshift.io on https://api.example.com:6443: initial RV \"\" is not supported due to issues with underlying WATCH, retrying in 1s" server="https://api.example.com:6443"

The error itself comes from the Kubernetes client API, which fails to establish the watch when the resource version of the API in question is empty or 0.

A workaround for this is to exclude the Project resource from Argo CD. This can be done using the following configuration snippet in the ArgoCD Operand:

spec: 
  resourceExclusions: |
  - apiGroups:
    - project.openshift.io
    kinds: 
    - Project
    clusters:
    - "*"

Root cause is unknown yet and needs investigation.