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I added the

grace_period

and

timeout

and now it's working

grace_period: -1 
    timeout: 120

Did it work fine before v1.3.23? Can you file an issue (preferably with a minimal reproducer)

I've tried the above config with 1.2.23 and it had the same problem. I created an issue here (https://github.com/rancher/rke/issues/3412), please take a look