gitlab-runner jobs istio-proxy failing in k3d

Bug

Description

When deploying BB 2.0 in k3d with gitlab and gitlab runner the runner job pods fail because of a problem with istio-proxy. Using k3d dev environment. I have done regression testing with the older versions of gitlab and gitlab-runner from BB 1.57.1 with the same result.
1.57.1
gitlab: tag 6.9.2-bb.1 appVersion: 15.9.2
gitlabRunner: tag 0.49.1-bb.3 appVersion 15.8.1

Running with gitlab-runner 15.10.0 (456e3482)
  on gitlab-runner-6cdbdf4c4-mjhb8 uRN_zzqd, system ID: r_gutgfpL9urpt
Preparing the "kubernetes" executor
00:00
Using Kubernetes namespace: gitlab-runner
Using Kubernetes executor with image registry1.dso.mil/ironbank/redhat/ubi/ubi8:8.7 ...
Using attach strategy to execute scripts...
Preparing environment
00:28
Waiting for pod gitlab-runner/runner-urnzzqd-project-2-concurrent-0dqk6s to be running, status is Pending
Waiting for pod gitlab-runner/runner-urnzzqd-project-2-concurrent-0dqk6s to be running, status is Pending
	ContainersNotInitialized: "containers with incomplete status: [init-permissions istio-init]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
Waiting for pod gitlab-runner/runner-urnzzqd-project-2-concurrent-0dqk6s to be running, status is Pending
	ContainersNotInitialized: "containers with incomplete status: [init-permissions istio-init]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
Waiting for pod gitlab-runner/runner-urnzzqd-project-2-concurrent-0dqk6s to be running, status is Pending
	ContainersNotInitialized: "containers with incomplete status: [init-permissions istio-init]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
Waiting for pod gitlab-runner/runner-urnzzqd-project-2-concurrent-0dqk6s to be running, status is Pending
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
Waiting for pod gitlab-runner/runner-urnzzqd-project-2-concurrent-0dqk6s to be running, status is Pending
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
Waiting for pod gitlab-runner/runner-urnzzqd-project-2-concurrent-0dqk6s to be running, status is Pending
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
Waiting for pod gitlab-runner/runner-urnzzqd-project-2-concurrent-0dqk6s to be running, status is Pending
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
Waiting for pod gitlab-runner/runner-urnzzqd-project-2-concurrent-0dqk6s to be running, status is Pending
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
	ContainersNotReady: "containers with unready status: [istio-proxy build helper]"
Running on runner-urnzzqd-project-2-concurrent-0dqk6s via gitlab-runner-6cdbdf4c4-mjhb8...
Getting source from Git repository
00:01
Fetching changes with git depth set to 20...
Initialized empty Git repository in /builds/test/test1/.git/
Created fresh repository.
remote: upstream connect error or disconnect/reset before headers. retried and the latest reset reason: connection failure, transport failure reason: delayed connect error: 111
fatal: unable to access 'http://gitlab-webservice-default.gitlab.svc.cluster.local:8181/test/test1.git/': The requested URL returned error: 503
ERROR: Job failed: command terminated with exit code 1

BigBang Version

2.0