Ready condition does not aggregate status value from other conditions

[dmvolod]

What steps did you take and what happened:
Create namespace capi-system

kubectl create ns capi-system

Create a simple CoreProvider configuration

apiVersion: operator.cluster.x-k8s.io/v1alpha2
kind: CoreProvider
metadata:
  name: cluster-api
  namespace: capi-system
spec:
  version: v1.8.5

Waiting for provider to be installed

kubectl wait --for=condition=Ready coreprovider/cluster-api -n capi-system

Patch CoreProvider object and downgrade version to emulated situation

kubectl patch coreproviders.operator.cluster.x-k8s.io cluster-api --type='json' -p='[{"op": "replace", "path": "/spec/version", "value":"v1.7.4"}]' -n capi-system

Right now, Ready will be always True, but PreflightCheckPassed will be false.

11:43 $ kubectl get coreprovider -A
NAMESPACE     NAME          INSTALLEDVERSION   READY
capi-system   cluster-api   v1.8.1             True

apiVersion: operator.cluster.x-k8s.io/v1alpha2
kind: CoreProvider
metadata:
  annotations:
    kubectl.kubernetes.io/last-applied-configuration: |
      {"apiVersion":"operator.cluster.x-k8s.io/v1alpha2","kind":"CoreProvider","metadata":{"annotations":{},"name":"cluster-api","namespace":"capi-system"},"spec":{"version":"v1.8.5"}}
    operator.cluster.x-k8s.io/applied-spec-hash: ""
  creationTimestamp: "2025-01-28T04:56:40Z"
  finalizers:
  - provider.cluster.x-k8s.io
  generation: 5
  name: cluster-api
  namespace: capi-system
  resourceVersion: "43118"
  uid: 429e4f13-c6d5-4b52-a5a0-13e99c9ce831
spec:
  version: v1.7.4
status:
  conditions:
  - lastTransitionTime: "2025-01-28T04:58:45Z"
    reason: MinimumReplicasAvailable
    status: "True"
    type: Ready
  - lastTransitionTime: "2025-01-28T08:43:13Z"
    message: Downgrade is not supported for provider cluster-api
    reason: UnsupportedProviderDowngradeReason
    severity: Error
    status: "False"
    type: PreflightCheckPassed
  - lastTransitionTime: "2025-01-28T04:56:50Z"
    status: "True"
    type: ProviderInstalled
  - lastTransitionTime: "2025-01-28T04:58:25Z"
    status: "True"
    type: ProviderUpgraded
  contract: v1beta1
  installedVersion: v1.8.1
  observedGeneration: 4

What did you expect to happen:
I expect, that aggregated Ready condition will be False as in common approach, operator can't apply resource to the target conditions with a new version or others preflight check validations.

Anything else you would like to add:
[Miscellaneous information that will assist in solving the issue.]
It would be nice to validate situations like this ASAP for any cases. I will create a separate issue related to integrate preflight checks inside the web-hook validation logic.

Environment:

• Cluster-api-operator version: v0.15.1
• Cluster-api version:
• Minikube/KIND version: KinD
• Kubernetes version: (use kubectl version): v1.29.2
• OS (e.g. from /etc/os-release): fedora

/kind bug
[One or more /area label. See https://github.com/kubernetes-sigs/cluster-api-operator/labels?q=area for the list of labels]

[k8s-ci-robot]

This issue is currently awaiting triage.

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