The IP address `169.254.7.127`, which Istio uses for its SNAT operations, has been found to overlap with OVN-K internal masquerade subnet range (169.254.0.2/17).
This creates an IP address conflict within the networking stack and could lead to unpredictable behavior at runtime.

Acceptance Criteria:
As a workaround we can modify the `internalMasqueradeSubnet` in OVN-K config, but it would be good to enhance Istio to support overriding the hardcoded SNAT IP.