Upgrade OCP 4.11 --> 4.12 fails with one 'NotReady,SchedulingDisabled' node and MachineConfigDaemonFailed.

Upgrade from OCP 4.11.0-0.nightly-2022-09-19-214532 on top of OSP RHOS-16.2-RHEL-8-20220804.n.1 to 4.12.0-0.nightly-2022-09-20-040107.

Network Type: OVNKubernetes

Twice out of two attempts.

1. Install OCP 4.11.0-0.nightly-2022-09-19-214532 (IPI) on top of OSP RHOS-16.2-RHEL-8-20220804.n.1.
   The cluster is up and running with three workers:
   $ oc get clusterversion
   NAME      VERSION                              AVAILABLE   PROGRESSING   SINCE   STATUS
   version   4.11.0-0.nightly-2022-09-19-214532   True        False         51m     Cluster version is 4.11.0-0.nightly-2022-09-19-214532

2. Run the OC command to upgrade to 4.12.0-0.nightly-2022-09-20-040107:
$ oc adm upgrade --to-image=registry.ci.openshift.org/ocp/release:4.12.0-0.nightly-2022-09-20-040107 --allow-explicit-upgrade --force=true
warning: Using by-tag pull specs is dangerous, and while we still allow it in combination with --force for backward compatibility, it would be much safer to pass a by-digest pull spec instead
warning: The requested upgrade image is not one of the available updates.You have used --allow-explicit-upgrade for the update to proceed anyway
warning: --force overrides cluster verification of your supplied release image and waives any update precondition failures.
Requesting update to release image registry.ci.openshift.org/ocp/release:4.12.0-0.nightly-2022-09-20-040107 

3. The upgrade is not succeeds: [0]
$ oc get clusterversion
NAME      VERSION                              AVAILABLE   PROGRESSING   SINCE   STATUS
version   4.11.0-0.nightly-2022-09-19-214532   True        True          17h     Unable to apply 4.12.0-0.nightly-2022-09-20-040107: wait has exceeded 40 minutes for these operators: network

One node degrided to 'NotReady,SchedulingDisabled' status:
$ oc get nodes
NAME                          STATUS                        ROLES    AGE   VERSION
ostest-9vllk-master-0         Ready                         master   19h   v1.24.0+07c9eb7
ostest-9vllk-master-1         Ready                         master   19h   v1.24.0+07c9eb7
ostest-9vllk-master-2         Ready                         master   19h   v1.24.0+07c9eb7
ostest-9vllk-worker-0-4x4pt   NotReady,SchedulingDisabled   worker   18h   v1.24.0+3882f8f
ostest-9vllk-worker-0-h6kcs   Ready                         worker   18h   v1.24.0+3882f8f
ostest-9vllk-worker-0-xhz9b   Ready                         worker   18h   v1.24.0+3882f8f

$ oc get pods -A | grep -v -e Completed -e Running
NAMESPACE                                          NAME                                                         READY   STATUS      RESTARTS       AGE
openshift-openstack-infra                          coredns-ostest-9vllk-worker-0-4x4pt                          0/2     Init:0/1    0              18h
 
$ oc get events
LAST SEEN   TYPE      REASON                                        OBJECT            MESSAGE
7m15s       Warning   OperatorDegraded: MachineConfigDaemonFailed   /machine-config   Unable to apply 4.12.0-0.nightly-2022-09-20-040107: failed to apply machine config daemon manifests: error during waitForDaemonsetRollout: [timed out waiting for the condition, daemonset machine-config-daemon is not ready. status: (desired: 6, updated: 6, ready: 5, unavailable: 1)]
7m15s       Warning   MachineConfigDaemonFailed                     /machine-config   Cluster not available for [{operator 4.11.0-0.nightly-2022-09-19-214532}]: failed to apply machine config daemon manifests: error during waitForDaemonsetRollout: [timed out waiting for the condition, daemonset machine-config-daemon is not ready. status: (desired: 6, updated: 6, ready: 5, unavailable: 1)]

$ oc get co
NAME                                       VERSION                              AVAILABLE   PROGRESSING   DEGRADED   SINCE   MESSAGE
authentication                             4.12.0-0.nightly-2022-09-20-040107   True        False         False      18h    
baremetal                                  4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
cloud-controller-manager                   4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
cloud-credential                           4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
cluster-autoscaler                         4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
config-operator                            4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
console                                    4.12.0-0.nightly-2022-09-20-040107   True        False         False      18h    
control-plane-machine-set                  4.12.0-0.nightly-2022-09-20-040107   True        False         False      17h    
csi-snapshot-controller                    4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
dns                                        4.12.0-0.nightly-2022-09-20-040107   True        True          False      19h     DNS "default" reports Progressing=True: "Have 5 available node-resolver pods, want 6."
etcd                                       4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
image-registry                             4.12.0-0.nightly-2022-09-20-040107   True        True          False      18h     Progressing: The registry is ready...
ingress                                    4.12.0-0.nightly-2022-09-20-040107   True        False         False      18h    
insights                                   4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
kube-apiserver                             4.12.0-0.nightly-2022-09-20-040107   True        True          False      18h     NodeInstallerProgressing: 1 nodes are at revision 11; 2 nodes are at revision 13
kube-controller-manager                    4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
kube-scheduler                             4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
kube-storage-version-migrator              4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
machine-api                                4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
machine-approver                           4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
machine-config                             4.11.0-0.nightly-2022-09-19-214532   False       True          True       16h     Cluster not available for [{operator 4.11.0-0.nightly-2022-09-19-214532}]: failed to apply machine config daemon manifests: error during waitForDaemonsetRollout: [timed out waiting for the condition, daemonset machine-config-daemon is not ready. status: (desired: 6, updated: 6, ready: 5, unavailable: 1)]
marketplace                                4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
monitoring                                 4.12.0-0.nightly-2022-09-20-040107   True        False         False      18h    
network                                    4.12.0-0.nightly-2022-09-20-040107   True        True          True       19h     DaemonSet "/openshift-ovn-kubernetes/ovnkube-node" rollout is not making progress - last change 2022-09-20T14:16:13Z...
node-tuning                                4.12.0-0.nightly-2022-09-20-040107   True        False         False      17h    
openshift-apiserver                        4.12.0-0.nightly-2022-09-20-040107   True        False         False      18h    
openshift-controller-manager               4.12.0-0.nightly-2022-09-20-040107   True        False         False      17h    
openshift-samples                          4.12.0-0.nightly-2022-09-20-040107   True        False         False      17h    
operator-lifecycle-manager                 4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
operator-lifecycle-manager-catalog         4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
operator-lifecycle-manager-packageserver   4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
service-ca                                 4.12.0-0.nightly-2022-09-20-040107   True        False         False      19h    
storage                                    4.12.0-0.nightly-2022-09-20-040107   True        True          False      19h     ManilaCSIDriverOperatorCRProgressing: ManilaDriverNodeServiceControllerProgressing: Waiting for DaemonSet to deploy node pods...

[0] http://pastebin.test.redhat.com/1074531

OCP 4.11 --> 4.12 upgrade fails.

OCP 4.11 --> 4.12 upgrade success.