Installation of OpenShift on OpenStack fails when using a combination of OpenStack Application Credentials and Infrastructure Nodes

OpenShift 4.16.6 on top of RHOS-17.1-RHEL-9-20240701.n.1

Always

- Install OpenStack and create Application Credential
- Update the Application Credential in the clouds.yaml
- Create infrastructure MachineSet during OCP installation
  - Generate the manifests using the openshift-install
  ```
  openshift-install --log-level=debug create manifests --dir <install_dir>
  ```
  - Create the infra machineset custom resource according to the official Sample YAML for a machine set custom resource on RHOSP documentation and put it at - <install_dir>/openshift/openshift-cluster-infra-machineset.yaml. [0]
  - Create the OCP cluster using the openshift-install create cluster command
- The installation finishes with a failure status.
- The machines are on 'Running' phase, but the nodes are not ready:
```
[stack@undercloud-0 ~]$ oc get machines -A
NAMESPACE               NAME                          PHASE     TYPE     REGION      ZONE   AGE
openshift-machine-api   ostest-sdbwq-infra-0-2lqgx    Running   master   regionOne   nova   4h58m
openshift-machine-api   ostest-sdbwq-infra-0-klf5q    Running   master   regionOne   nova   4h58m
openshift-machine-api   ostest-sdbwq-infra-0-n4sc9    Running   master   regionOne   nova   4h58m
openshift-machine-api   ostest-sdbwq-master-0         Running   master   regionOne   nova   5h4m
openshift-machine-api   ostest-sdbwq-master-1         Running   master   regionOne   nova   5h4m
openshift-machine-api   ostest-sdbwq-master-2         Running   master   regionOne   nova   5h4m
openshift-machine-api   ostest-sdbwq-worker-0-4dnj6   Running   worker   regionOne   nova   4h58m
openshift-machine-api   ostest-sdbwq-worker-0-cct4f   Running   worker   regionOne   nova   4h58m
openshift-machine-api   ostest-sdbwq-worker-0-hswpv   Running   worker   regionOne   nova   4h58m

[stack@undercloud-0 ~]$ oc get machinesets -A
NAMESPACE               NAME                    DESIRED   CURRENT   READY   AVAILABLE   AGE
openshift-machine-api   ostest-sdbwq-infra-0    3         3                             5h4m
openshift-machine-api   ostest-sdbwq-worker-0   3         3                             5h4m

[stack@undercloud-0 ~]$ oc get nodes
NAME                          STATUS     ROLES                  AGE     VERSION
ostest-sdbwq-infra-0-2lqgx    NotReady   infra,worker           4h50m   v1.29.6+aba1e8d
ostest-sdbwq-infra-0-klf5q    NotReady   infra,worker           4h50m   v1.29.6+aba1e8d
ostest-sdbwq-infra-0-n4sc9    NotReady   infra,worker           4h50m   v1.29.6+aba1e8d
ostest-sdbwq-master-0         Ready      control-plane,master   5h3m    v1.29.6+aba1e8d
ostest-sdbwq-master-1         Ready      control-plane,master   5h3m    v1.29.6+aba1e8d
ostest-sdbwq-master-2         Ready      control-plane,master   5h3m    v1.29.6+aba1e8d
ostest-sdbwq-worker-0-4dnj6   NotReady   worker                 4h48m   v1.29.6+aba1e8d
ostest-sdbwq-worker-0-cct4f   NotReady   worker                 4h44m   v1.29.6+aba1e8d
ostest-sdbwq-worker-0-hswpv   NotReady   worker                 4h51m   v1.29.6+aba1e8d
``` 

[0] https://docs.openshift.com/container-platform/4.16/machine_management/creating-infrastructure-machinesets.html

Installation fails

Installation passes with Application Credentials and Infrastructure Nodes

- Using just Application Credentials works as expected
- Using just Infrastructure Nodes works as expected
- Installation passes with Application Credentials and Infrastructure Nodes when using OpenShift 4.16.5 - it is a regression appears on OCP 4.16.6
- This issue is not appear on OCP 4.17.0-0.nightly-2024-08-09-031511

2024-08-12T07:23:44.480953928Z E0812 07:23:44.480880       1 controller.go:266] ostest-sdbwq-worker-0-cct4f: failed to check if machine exists: Failed to get cloud from secret: Failed to get secrets from kubernetes api: Get "https://172.30.0.1:443/api/v1/namespaces/openshift-machine-api/secrets/openstack-cloud-credentials": stream error: stream ID 197; INTERNAL_ERROR; received from peer
2024-08-12T07:23:56.150558205Z E0812 07:23:56.150503       1 controller.go:329]  "msg"="Reconciler error" "error"="Failed to get cloud from secret: Failed to get secrets from kubernetes api: Get \"https://172.30.0.1:443/api/v1/namespaces/openshift-machine-api/secrets/openstack-cloud-credentials\": stream error: stream ID 197; INTERNAL_ERROR; received from peer" "controller"="machine-controller" "name"="ostest-sdbwq-worker-0-cct4f" "namespace"="openshift-machine-api" "object"={"name":"ostest-sdbwq-worker-0-cct4f","namespace":"openshift-machine-api"} "reconcileID"="c867f5cd-a52f-4126-8af5-74204e03b344"

[stack@undercloud-0 ~]$ oc get secret -n openshift-machine-api openstack-cloud-credentials -o json | jq -r '.data."clouds.yaml"' | base64 -d
clouds:
  openstack:
    auth:
      application_credential_id: <encrypted_application_credential_id>
      application_credential_secret: <encrypted_application_credential_secret>
      auth_url: https://overcloud.redhat.local:13000
    auth_type: v3applicationcredential
    cacert: /etc/kubernetes/static-pod-resources/configmaps/cloud-config/ca-bundle.pem
    identity_api_version: "3"
    region_name: regionOne
    verify: true