[BUG] AKS Arc agent connection fails with timeout (aad-proxy)

[mitkox]

Describe the bug
The Arc agent for AKS is not connecting through a proxy. The Arc-connected machine agent is connected on the same machine and works fine.

To Reproduce
Steps to reproduce the behavior:

1. Configure proxy in the config file
2. Connect-AideArc exits with an error when trying the connect the AKS Arc agent
   WARNING: Unable to fetch the Object ID of the Azure AD application used by Azure Arc service. Unable to enable the 'custom-locations' feature. Insufficient privileges to complete the operation.
   WARNING: Please check if the azure-arc namespace was deployed and run 'kubectl get pods -n azure-arc' to check if all the pods are in running state. A possible cause for pods stuck in pending state could be insufficient resources on the kubernetes cluster to onboard to arc.
   ERROR: Unable to install helm release: Error: timed out waiting for the condition Error: arc connect failed.
   False

Expected behavior
AKS Arc agent to connect through a proxy

Screenshots
If applicable, add screenshots to help explain your problem.

Environment (please complete the following information):

• AKS Edge Essentials Version 0.7.22335.1024
• Kubernetes version 1.23.6
• Windows Host OS (please complete the following information):
  • Edition: Windows 10 Enterprise
  • Version: 19044
  • Virtual Machine: PC

Additional context
The helm or the Arc agent for AKS EE is not reading the proxy configuration

[parameshbabu]

https://learn.microsoft.com/en-us/azure/azure-arc/kubernetes/troubleshooting#helm-timeout-error
states

[parameshbabu]

Azure/aks-engine#679

[parameshbabu]

The issue is not related to proxy but timeout on aad-proxy.. updating title

[dnarh]

I get the same error when trying to connect a multi-node deployment to Arc. If I connect the deployment to Arc with only one node, before scaling out to the remaining nodes, which is then done after Arc connection has succeeded, it works.

[krdhruva]

@dnarh, @mitkox can you pls confirm whether clusterconnect-agent and config-agent pods are running?
Additionally, can you follow this and share the output?
https://learn.microsoft.com/en-us/azure/azure-arc/kubernetes/diagnose-connection-issues#connections-with-a-proxy-server

If you are connecting cluster without proxy server, pls follow below troubleshooting steps.
https://learn.microsoft.com/en-us/azure/azure-arc/kubernetes/diagnose-connection-issues#connections-without-a-proxy

[parameshbabu]

Fixed with #70 and GA updates (Az ConnectedKubernetes 0.8.0 version)