Only the hypershift team likely fully understands this but it looks like https://github.com/openshift/machine-config-operator/pull/3688, once accepted in the CI payload, began failing the hypershift e2e job. From discussion from the team, it sounds like it is a bug in hypershift.

Full discussion here: https://redhat-internal.slack.com/archives/C01C8502FMM/p1686179658004149