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kube-controller-manager is what gets status and changes it so kubectl knows what's going on. If it's horked, you won't see updates. So you could scale deployments up & down and it'd all still show whatever it was to start with.

I’m guessing it’s related to this: https://github.com/rancher/rancher/issues/41125#issuecomment-1506620040

@gray-lawyer-73831 Thank you! that was it.