When we try to install an extension in a cluster that is using a proxy the nodes are degraded with the following error:

  - lastTransitionTime: "2024-01-16T08:51:54Z"
    message: 'Node ip-10-0-60-157.us-east-2.compute.internal is reporting: "error
      running rpm-ostree update --install usbguard: error: Creating importer: Failed
      to invoke skopeo proxy method OpenImage: remote error: pinging container registry
      quay.io: Get \"https://quay.io/v2/\": dial tcp 3.215.241.212:443: i/o timeout\n:
      exit status 1"'
    reason: 1 nodes are reporting degraded status on sync
    status: "True"
    type: NodeDegraded

    

$ oc get clusterversion
NAME      VERSION                              AVAILABLE   PROGRESSING   SINCE   STATUS
version   4.15.0-0.nightly-2024-01-15-084511   True        False         104m    Cluster version is 4.15.0-0.nightly-2024-01-15-084511
    

Always
    

    1. Deploy a cluster using a proxy

	We used this template in our tests: private-templates/functionality-testing/aos-4_15/ipi-on-aws/versioned-installer-customer_vpc-http_proxy

    2. Create a MC to install an extension

oc create -f - << EOF
apiVersion: machineconfiguration.openshift.io/v1
kind: MachineConfig
metadata:
  creationTimestamp: "2024-01-16T08:39:58Z"
  generation: 1
  labels:
    machineconfiguration.openshift.io/role: worker
  name: change-worker-extension-usbguard-81x9ws53
  resourceVersion: "55875"
  uid: 761232f4-3c6b-4319-a0c5-c5717d924319
spec:
  config:
    ignition:
      version: 3.2.0
  extensions:
  - usbguard
EOF


    

The worker pool is degraded reporting this error:
  - lastTransitionTime: "2024-01-16T08:51:54Z"
    message: 'Node ip-10-0-60-157.us-east-2.compute.internal is reporting: "error
      running rpm-ostree update --install usbguard: error: Creating importer: Failed
      to invoke skopeo proxy method OpenImage: remote error: pinging container registry
      quay.io: Get \"https://quay.io/v2/\": dial tcp 54.161.8.139:443: i/o timeout\n:
      exit status 1"'
    reason: 1 nodes are reporting degraded status on sync
    status: "True"
    type: NodeDegraded


    

The node should not be degraded and the usbguard extension should be installed without problems.
    

You can find the must-gather file in the first comment in this PR.