make local-up-cluster.sh match "normal" launch without anonymous access

[deads2k]

Ref #38847

This changes the readiness detection, but keeps the defaults matching the "normal" launch without anonymous auth.

Fixes an issue where `hack/local-up-cluster.sh` would fail on the API server start with

!!! [1215 15:42:56] Timed out waiting for apiserver:  to answer at https://localhost:6443/version; tried 10 waiting 1 between each

@janetkuo @saad-ali

[k8s-reviewable]

This change is 

[k8s-ci-robot]

Jenkins GKE smoke e2e failed for commit 757e376. Full PR test history.

The magic incantation to run this job again is @k8s-bot cvm gke e2e test this. Please help us cut down flakes by linking to an open flake issue when you hit one in your PR.

[saad-ali]

Please update the original comment to add a release note indicating this fixes a break in local-up-cluster.sh #38847.

Release note format:

```release-note
blah blah blah
`` `

[saad-ali]

Also can you verify that ./hack/local-up-cluster.sh starts without issue with this change?

[saad-ali]

@k8s-bot cvm gke e2e test this

[saad-ali]

Make sure to cherry pick this, #38708, and #38717 back to the master branch.

[deads2k]

Also can you verify that ./hack/local-up-cluster.sh starts without issue with this change?

Started fine for me.

[deads2k]

Make sure to cherry pick this, #38708, and #38717 back to the master branch.

The audit trail one already merged. I think we'd like to try a different approach for anonymous auth in master that involves tweaking evaluation rules for ABAC and RBAC instead.

[deads2k]

Please update the original comment to add a release note indicating this fixes a break in local-up-cluster.sh #38847.

done.

[k8s-github-robot]

@k8s-bot test this [submit-queue is verifying that this PR is safe to merge]

[k8s-github-robot]

Automatic merge from submit-queue

[lavalamp]

I think this fix cured the symptom--the script completes--but did not actually cure the problem. The apiserver produced rejects all connections from controller manager.