OLM operator installation is failing - RPC DeadlineExceeded while listing bundles

Detected on OCP 4.16.46 and latest nightly releases (e.g. 4.16 nightly 2025-08-20 00:35)

100% reproducible in partner's lab using OCP 4.16

    1. Deploy OpenShift 4.16 with the given versions in a 3-node compact cluster, which intends to act as hub cluster with ACM. Installation uses agent-based installer in baremetal
    2. Deploy an OpenShift operator with OLM (e.g. advanced-cluster-management)
    3. Check that InstallPlan is not generated
    4. Check that Subscription reports the error mentioned in the bug title

Operator's Subscription is reporting the following status:

                    {
                        "message": "error using catalogsource openshift-marketplace/redhat-operators: error encountered while listing bundles: rpc error: code = DeadlineExceeded desc = context deadline exceeded",
                        "reason": "ErrorPreventedResolution",
                        "status": "True",
                        "type": "ResolutionFailed"
                    }

Operator installation should work fine.

This is a follow-up of OCPBUGS-57429. Even though there was a proposed fix for OCP 4.16.46, the issue is still present.
The issue is not observed in other OCP versions, such as OCP 4.17.

Here we have some logs reported on Distributed CI (you can find the must gather files there):
- OpenShift 4.16 nightly 2025-08-20 00:35 - https://www.distributed-ci.io/jobs/7d009c84-692f-4aad-a3f3-88bbffb71a65/files
- OpenShift 4.16.46 - https://www.distributed-ci.io/jobs/be5a95f4-2cf1-45f3-a230-b42553d6f6a6/files

All nodes are Dell PowerEdge R750 machines, just in case this info is useful.