VirtualService and Service causes an error "Only unique values for domains are permitted. Duplicate entry of domain"

cat <<EOF | oc apply -f -
apiVersion: maistra.io/v2
kind: ServiceMeshControlPlane
metadata:
  name: basic
  namespace: istio-system
spec:
  profiles:
  - default
  version: v2.0
EOF

cat <<EOF | oc apply -f -
apiVersion: maistra.io/v1
kind: ServiceMeshMemberRoll
metadata:
  name: default
  namespace: istio-system
spec:
  members:
  - default
EOF

cat <<EOF | oc apply -f -
apiVersion: v1
kind: Service
metadata:
  name: hello
  namespace: default
spec:
  externalName: hello.example.com
  ports:
  - name: http2
    port: 80
    protocol: TCP
    targetPort: 80
  sessionAffinity: None
  type: ExternalName
EOF

cat <<EOF | oc apply -f -
apiVersion: networking.istio.io/v1beta1
kind: VirtualService
metadata:
  name: hello-mesh
  namespace: default
spec:
  gateways:
  - mesh
  hosts:
  - hello.default
  http:
  - route:
    - destination:
        host: some-host
        port:
          number: 80
EOF

$ oc -n istio-system logs istiod-basic-6bfb8c9bb4-sv66l -f
  ...
2021-04-26T08:58:55.379684Z	warn	ads	ADS:RDS: ACK ERROR sidecar~10.129.2.90~networking-istio-6ff595b57c-zgtmb.knative-serving~knative-serving.svc.cluster.local-23 Internal:Only unique values for domains are permitted. Duplicate entry of domain hello.default

$ oc get pod -n openshift-operators istio-operator-f7d5ccc5d-wxvp4 -o yaml |grep image:
 image: registry.redhat.io/openshift-service-mesh/istio-rhel8-operator@sha256:8ee5f6926150d401e1f62ac8a4861af3261186dce6c94b7e70738dc55454d534

$ oc get deploy -n istio-system istiod-basic -o yaml |grep image:
 image: registry.redhat.io/openshift-service-mesh/pilot-rhel8@sha256:4163a9d3a9e85d9033b1b6038acfd75af08c7082d87afb3766ba8b4fbe454883