Upstream Issue: https://github.com/vmware-tanzu/velero/issues/9294

What steps did you take and what happened:

With Velero 1.17, I tried to use fs-backup on OpenShift. I get a permission error because the fs-backup pod is not running in a Privileged security context, which is required for fs-backup to work on OpenShift. In 1.16, this worked because we have the option to run the node agent pods in privileged mode.

What did you expect to happen:
The backup to work

The following information will help us better understand what's going on:

I'll be submitting a PR shortly. We need a new --privileged-fs-backup install and node-agent server option for users using k8s environments that require this. We need a new param rather than simply propagating the existing node-agent privileged flag, since the conditions where this is needed for node agent (block mode on all clusters) are different from where it's needed for fs-backup (for certain cluster types if using fs-backup). It's possible to need privileged node agent but not privileged fs-backup, and vice versa.

Environment:

• Velero version: 1.17
• Kubernetes platform: OpenShift
• Issue affects filesystem backup functionality requiring privileged pod security context

Additional Notes:
This issue affects OpenShift clusters specifically where filesystem backup requires privileged security context to access mount paths. The functionality worked in Velero 1.16 but is broken in 1.17.