Right now the sidecar inject is disabled on certain things because they prevent gitlab from starting up. When native sidecars are on, they can and should use sidecars.
remove the changes to sidecar inject that were create here
revert the values.yaml changes for sidecar inject that were changed here
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This requires an upgrade to K8s 1.29 (or 1.28 with the feature gate enabled) for native sidecars. This gets rid of the istioproxy container and instead builds it into the existing container. This allows jobs to exit gracefully (rather than staying alive forever because istioproxy won't exit), and allows init containers to run because envoy is built into each of them rather than coming up after init containers would run. This requires .Values.istio.values.pilot.env contains {"ENABLE_NATIVE_SIDECARS": true}, so if you are currently passing values there, make sure to add this to them.
When upgrading, if desired, you can, but don't have to, force the switch to init containers immediately by restarting all of your istio-supporting pods, e.g.
If you don't do this immediately, they will switch to init containers on their next restart, but this should be backwards compatible with the istioproxy sidecar containers.
also make sure to add a note about having the charts requiring a kubeversion and to have those charts require a kubeversion (istio-controlplane and BB >=1.28.0-0).