This is a clone of issue OCPBUGS-25937. The following is the description of the original issue:
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Due to upstream changes (https://github.com/kubernetes/kubernetes/pull/121485) KMSv1 is deprecated starting with k8s 1.29. HyperShift is actively using KMSv1. Migrating cluster from KMSv1 to KMSv2 is tricky so we need to at least make sure that new ROSA clusters can only enable KMSv2 whilst old one remains on KMSv1.

We need to verify that new installations of ROSA that enables KMS encryption are running the KMSv2 API and that old clusters upgrading to a version where KMSv2 is available remains on KMSv1.