I have an AKS cluster on Azure with virtual-nodes enabled (virtual-kubelet/azure-aci v1.3.2) and it works OK (a little flakey, but does mostly work). My problem is that as soon as I enable istio side car injection on any deployment I want to run on a virtual-node, the istio-proxy sidecar won't start, preventing the entire pod from starting up. I believe the problem is that v1:status.podIP is not yet supported in virtual-kubelet/azure-aci, and the istio sidecar spec makes use of it.
Has anyone had this problem? I can't find anything much about istio + virtual kubelet on the googlez.
I'm working around the problem for the time being by using PERMISSIVE mtls mode on the one dependency it relies on being able to make http calls to, and turning off side car injection via an annotation on the deployment. This is not ideal.
Thanks