Rancher 2.6.9 on Ubuntu 20.04.5 LTS on an external vmware workstation VM Integrated with Harvester 1.1 Able to register harvester in virtualization mgmt and it is able to retrieve information about harvester but provisioning a cluster using cluster management fails with failed to create fleet-default/k8s cluster.x-k8s.io/v1beta1, Kind=Cluster for rke-cluster fleet-default/k8s: Internal error occurred: failed calling webhook "default.cluster.cluster.x-k8s.io": failed to call webhook: Post "https://webhook-service.cattle-system.svc:443/mutate-cluster-x-k8s-io-v1beta1-cluster?timeout=10s": service "webhook-service" not found, failed to create fleet-default/k8s-pool1 cluster.x-k8s.io/v1beta1, Kind=MachineDeployment for rke-cluster fleet-default/k8s: Internal error occurred: failed calling webhook "default.machinedeployment.cluster.x-k8s.io": failed to call webhook: Post "https://webhook-service.cattle-system.svc:443/mutate-cluster-x-k8s-io-v1beta1-machinedeployment?timeout=10s": service "webhook-service" not found

You might try something like this process to fix it https://www.suse.com/support/kb/doc/?id=000020699

At the end of the day I discovered I had some underlying longhorn issues that were restarting my rancher VM on/in harvester (well a bunch of PVCs) and when I rebooted it, they were all working again. So got the integration working with a nested rancher in harvester, even though rancher is in harvester already. LOL. It will be nice when they have this ALL integrated.