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I can add, I see this same issue with creating RKE2 v1.23.16 cluster (Rancher 2.7.1 - stable)

rancher 2.7.1 includes PSPs built in - which is exactly why we dont support 1.25+ yet. We are working on removing and replacing PSPs for the next release.

yea its a 'this is going away in kubernetes version 1.25 so dont use it on any of your newly created apps' type of warning, but i agree is a bit vague as rancher uses tons of psp everywhere

1.25 is supposed to be supported by Rancher 2.7.2, if I got this correctly. https://github.com/rancher/rancher/releases/tag/v2.7.2-rc6 doesn't mention a migration procedure. Do you have further information? What about the apps from the app store installing their own PSPs (eg. Longhorn)?