This is a clone of issue OCPBUGS-38489. The following is the description of the original issue:
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Description of problem:

In ZTP, when creating a cluster, a KlusterletAddonConfig CR is created to create a ManagedCluster with the labels:

  clusterLabels:
    cloud: auto-detect
    vendor: auto-detect    

According to the doc, when importing with `auto-detect` this should be substitued, in our case, by Openshift. This is not happening, and the ManagedCluster CRs dont get the vendor label.

More info here

Version-Release number of selected component (if applicable):

    4.16

How reproducible:

In your usual ZTP Gitops deployment, you will observe that ManagedClusters dont have the vendor label:

> oc get managedcluster vsno5 -o json | grep vendor

> 

Steps to Reproduce:

    1. Install ACM observability
    2. Install a cluster with ZTP
    3. No data being sent back to the hub + no "vendor" and "cloud" label in the generated managedcluster CR
    

Actual results:

Expected results:

"vendor" and "cloud" label in the generated managedcluster CR with appropriate values and ACM observability should work without any user intervention (i.e managedcluster metrics should start flowing into hub right after cluster installed successfully)  

Additional info: