Per the support case: https://access.redhat.com/support/cases/#/case/04138282

This seems like a bug in propagating the labels upon updates.

When a custom label is added to a Knative Service, it is propagated immediately though to the corresponding Knative Route but not immediately to the corresponding k8s Service which points to the Kourier ingress service at kourier-internal.knative-serving-ingress.svc.cluster.local:80.

For the label to be applied to the k8s Service it has to be deleted, then when it is automatically recreated it has the label applied.

Steps to reproduce:

1. Create a Knative Service
2. Edit the Knative Service so that it has a custom label
3. Observe that the label has been applied to the corresponding Knative Route
4. Observe the label has not been applied to the k8s Service which points to the Kourier ingress service
5. Delete the k8s Service which points to the Kourier ingress service
6. Observe that the k8s Service is recreated with the label applied

Describe the impact to you or the business
Unable to add or make changes to custom labelling in k8s Service

In what environment are you experiencing this behavior?
All environment

How frequently does this behavior occur? Does it occur repeatedly or at certain times?
Repeatable issue