Istio fails to deploy in airgapped setup in Rancher v2.3.4

[rancher-max]

What kind of request is this (question/bug/enhancement/feature request):
bug

Steps to reproduce (least amount of steps as possible):

1. Create an air gapped Rancher setup using -e CATTLE_SYSTEM_CATALOG=bundled option
2. Add a (large) cluster to the setup. I used EC2 and created 1 instance of t2.2xlarge. When adding the cluster in Rancher, be sure to specify all 3 roles.
3. Enable Istio

Result:
Istio fails to deploy. All of the images are stuck in ImagePullBackOff state, and they are using docker.io instead of the private registry.

Other details that may be helpful:
The istio images are not present in rancher-images.txt, so are not available in the private registry. Running docker images inside of the cluster only retrieves one istio image: istio-kubectl.

Environment information

• Rancher version: v2.3.4
• Installation option (single install/HA): single

Cluster information

• 1 Node with all 3 roles (cp, etcd, worker): EC2 t2.2xlarge
• Kubernetes version (use kubectl version):

Client Version: version.Info{Major:"1", Minor:"16", GitVersion:"v1.16.1", GitCommit:"d647ddbd755faf07169599a625faf302ffc34458", GitTreeState:"clean", BuildDate:"2019-10-02T17:01:15Z", GoVersion:"go1.12.10", Compiler:"gc", Platform:"linux/amd64"}
Server Version: version.Info{Major:"1", Minor:"17", GitVersion:"v1.17.0", GitCommit:"70132b0f130acc0bed193d9ba59dd186f0e634cf", GitTreeState:"clean", BuildDate:"2019-12-07T21:12:17Z", GoVersion:"go1.13.4", Compiler:"gc", Platform:"linux/amd64"}

• Docker version (use docker version):

Client: Docker Engine - Community
 Version:           19.03.2
 API version:       1.40
 Go version:        go1.12.8
 Git commit:        6a30dfc
 Built:             Thu Aug 29 05:29:11 2019
 OS/Arch:           linux/amd64
 Experimental:      false

Server: Docker Engine - Community
 Engine:
  Version:          19.03.2
  API version:      1.40 (minimum version 1.12)
  Go version:       go1.12.8
  Git commit:       6a30dfc
  Built:            Thu Aug 29 05:27:45 2019
  OS/Arch:          linux/amd64
  Experimental:     false
 containerd:
  Version:          1.2.6
  GitCommit:        894b81a4b802e4eb2a91d1ce216b8817763c29fb
 runc:
  Version:          1.0.0-rc8
  GitCommit:        425e105d5a03fabd737a126ad93d62a9eeede87f
 docker-init:
  Version:          0.18.0
  GitCommit:        fec3683

[deniseschannon]

Available in the dev branch of system-charts

[rancher-max]

Tests passed using Rancher v2.3.5-rc2 and the default chart included with that ( https://git.rancher.io/system-charts Branch: dev)

Istio now deploys in Airgap both with a fresh install of v2.3.5-rc2 and an upgrade from v2.3.3 to v2.3.5-rc2. General workflow with gateway, virtual services, and destination rules working as expected. Links and traffic graph showing expected results:

Below is screenshot of services deployed in airgap with full set of custom answers: