istio operator podlocality-controller Error updating pod's labels: Operation cannot be fulfilled on bookinfo pods

Build Info:
OCP 4.6.9
Istio operator 2.0.1.1 registry.redhat.io/openshift-service-mesh/istio-rhel8-operator@sha256:46a29f91e6bc83beee46431b36177f3afe4b98830be6bac2010dcde65bc04a9f
SMCP v2.0

How to reproduce:
1. Deploy OSSM 2.0.1.1 operators and v2.0 SMCP on an OCP 4.6
2. Create bookinfo ns and add it into a SMMR
3. Enable mTLS by a patch :

kubectl patch -n istio-system smcp/basic-install --type merge -p '{"spec":{"security":{"dataPlane":{"mtls":true},"controlPlane":{"mtls":true}}}}'

4. Update SMCP spec.security.controlPlane.tls by a patch:

kubectl patch -n istio-system smcp/basic-install --type merge -p '{"spec":{"security":{"controlPlane":{"tls":{"minProtocolVersion":"TLSv1_2","maxProtocolVersion":"TLSv1_2","cipherSuites":["TLS_ECDHE_RSA_WITH_AES_128_GCM_SHA256"],"ecdhCurves":["CurveP256", "CurveP384"]}}}}}'

5. Wait until all pods are running in SMCP ns
6. Deploy bookinfo in bookinfo ns

I see there is no pod in bookinfo and error messages in istio-operator pod log: