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I've run into similar with the whole 'nodes not ready' when they clearly are, it was a communication issue with the rancher agent and rancher server if i remember correctly. Where the rancher agent running on the VM couldnt properly communicate with whatever your rancher url was. For us the fix was to use an ip address instead of url for the rancher server name.

Thanks for your input! I think this error must be different, seems like the only option left is to remove and replace

@brainy-whale-94197 what base os are you running?

Sry for late reply, I could not save this had to rebuild the cluster.