kubeProxyReplacement=false does not work and doesn't detect that kube-proxy is already installed

[taotriad]

cilium-cli version: v0.16.21

I'm attempting to upgrade from cilium v1.16.3 to v1.16.4.

I get the following:

ℹ️  Using Cilium version 1.16.4
🔮 Auto-detected cluster name: fedoracluster
🔮 Auto-detected kube-proxy has not been installed
ℹ️ Cilium will fully replace all functionalities of kube-proxy

My cluster disagrees:

kubectl get po -A | grep kube-proxy
kube-system                       kube-proxy-fedora                                      1/1     Running     0             21h

Trying to override this doesn't work either:

cilium-cli upgrade --set kubeProxyReplacement=false

It gives the same output.

I think this indicates that there are at least 2 issues; that disabling kube-proxy replacement doesn't work, and that auto-detection doesn't work.

Note: it seems as though the install target also has the same issue.

[taotriad]

As additional info, the cluster is running rke2 (with the default CNI disabled).