SNO installation does not finish due to machine-config waiting for a non existing machine config

SNO installation does not finish due to machine-config waiting for a non existing machine config.

 oc get co machine-config
NAME             VERSION   AVAILABLE   PROGRESSING   DEGRADED   SINCE   MESSAGE
machine-config             True        True          True       14h     Unable to apply 4.14.0-0.nightly-2023-08-23-075058: error during syncRequiredMachineConfigPools: [context deadline exceeded, failed to update clusteroperator: [client rate limiter Wait returned an error: context deadline exceeded, error MachineConfigPool master is not ready, retrying. Status: (pool degraded: true total: 1, ready 0, updated: 0, unavailable: 1)]]

oc -n openshift-machine-config-operator logs machine-config-daemon-2stpc --tail 5
Defaulted container "machine-config-daemon" out of: machine-config-daemon, kube-rbac-proxy
I0824 07:39:12.117508   22874 daemon.go:1370] In bootstrap mode
E0824 07:39:12.117525   22874 writer.go:226] Marking Degraded due to: machineconfig.machineconfiguration.openshift.io "rendered-master-231b9341930d0616544ad05989a5c1b8" not found
W0824 07:40:12.131400   22874 daemon.go:1630] Failed to persist NIC names: open /etc/systemd/network: no such file or directory
I0824 07:40:12.131417   22874 daemon.go:1370] In bootstrap mode
E0824 07:40:12.131429   22874 writer.go:226] Marking Degraded due to: machineconfig.machineconfiguration.openshift.io "rendered-master-231b9341930d0616544ad05989a5c1b8" not found

4.14.0-0.nightly-2023-08-23-075058

100%

1. Deploy SNO with Telco DU profile
2. Wait for installation to finish

Installation doesn't complete due to master MCP being degraded waiting for a non-existing machineconfig.

Installation succeeds.

Attaching sosreport and must-gather