osImages that cannot be pulled do not set the node as Degraded properly

When we configure a MC using an osImage that cannot be pulled, the machine config daemon pod spams logs saying that the node is set to "Degraded" state, but the node is not set to "Degraded" state.

Only after long time, like 20 minutes or half and hour, the node eventually becomes degraded.

4.12.0-0.nightly-2022-09-26-111919

Always

1. Create a MC using an osImage that cannot be pulled

apiVersion: machineconfiguration.openshift.io/v1
kind: MachineConfig
metadata:
  creationTimestamp: "2022-09-27T12:48:13Z"
  generation: 1
  labels:
    machineconfiguration.openshift.io/role: worker
  name: not-pullable-image-tc54054-w75j1k67
  resourceVersion: "374500"
  uid: 7f828fbc-8da3-4f16-89e2-34e39ff830b3
spec:
  config:
    ignition:
      version: 3.2.0
    storage:
      files: []
    systemd:
      units: []
  osImageURL: quay.io/openshifttest/tc54054fakeimage:latest


2. Check the logs in the machine config daemon pod, you can see this message being spammed, saying that the daemon is marking the node with "Degraded" status.

E0927 14:31:22.858546    1697 writer.go:200] Marking Degraded due to: Error checking type of update image: failed to run command podman (6 tries): [timed out waiting for the condition, running podman pull -q --authfile /var/lib/kubelet/config.json quay.io/openshifttest/tc54054fakeimage:latest failed: Error: initializing source docker://quay.io/openshifttest/tc54054fakeimage:latest: reading manifest latest in quay.io/openshifttest/tc54054fakeimage: name unknown: repository not found
E0927 14:34:10.698564    1697 writer.go:200] Marking Degraded due to: Error checking type of update image: failed to run command podman (6 tries): [timed out waiting for the condition, running podman pull -q --authfile /var/lib/kubelet/config.json quay.io/openshifttest/tc54054fakeimage:latest failed: Error: initializing source docker://quay.io/openshifttest/tc54054fakeimage:latest: reading manifest latest in quay.io/openshifttest/tc54054fakeimage: name unknown: repository not found
E0927 14:36:58.557340    1697 writer.go:200] Marking Degraded due to: Error checking type of update image: failed to run command podman (6 tries): [timed out waiting for the condition, running podman pull -q --authfile /var/lib/kubelet/config.json quay.io/openshifttest/tc54054fakeimage:latest failed: Error: initializing source docker://quay.io/openshifttest/tc54054fakeimage:latest: reading manifest latest in quay.io/openshifttest/tc54054fakeimage: name unknown: repository not found

The node is not marked as degraded as it should. Only after long time, 20 minutes or so, the node becomes degraded.

When the podman pull command fails and the machine config daemon sets the node state as "Degraded", the node should actually be marked as "Degraded".