In the Konnectivity SOCKS proxy: currently the default is to proxy cloud endpoint traffic: https://github.com/openshift/hypershift/blob/main/konnectivity-socks5-proxy/main.go#L61

Due to this after this change: https://github.com/openshift/hypershift/commit/0c52476957f5658cfd156656938ae1d08784b202

The oauth server had a behavior change where it began to proxy iam traffic instead of not proxying it. This causes a regression in Satellite environments running with an HTTP_PROXY server. The original network traffic path needs to be restored

4.13 4.12

100%

1. Setup HTTP_PROXY IBM Cloud Satellite environment
2. In the oauth-server pod run a curl against iam (curl -v https://iam.cloud.ibm.com)
3. It will log it is using proxy

It is using proxy 

It should send traffic directly (as it does in 4.11 and 4.10)