fix: handle context errors as transient errors

internal/provider/kubernetes/controller.go

@@ -256,7 +256,9 @@ func isTransientError(err error) bool {
 		kerrors.IsServiceUnavailable(err) ||
 		kerrors.IsStoreReadError(err) ||
 		kerrors.IsInternalError(err) ||
-		kerrors.IsUnexpectedServerError(err)
+		kerrors.IsUnexpectedServerError(err) ||
+		errors.Is(err, context.Canceled) ||
+		errors.Is(err, context.DeadlineExceeded)
 }
 
 // Reconcile handles reconciling all resources in a single call. Any resource event should enqueue the

internal/provider/kubernetes/controller_test.go

@@ -1603,6 +1603,12 @@ func TestIsTransientError(t *testing.T) {
 	serviceUnavailableErr := kerrors.NewServiceUnavailable("service unavailable")
 	badRequestErr := kerrors.NewBadRequest("bad request")
 
+	// new test errors for context
+	canceledErr := context.Canceled
+	deadlineExceededErr := context.DeadlineExceeded
+	wrappedCanceledErr := fmt.Errorf("wrapped: %w", context.Canceled)
+	wrappedDeadlineExceededErr := fmt.Errorf("wrapped: %w", context.DeadlineExceeded)
+
 	testCases := []struct {
 		name     string
 		err      error
@@ -1614,6 +1620,10 @@ func TestIsTransientError(t *testing.T) {
 		{"ServiceUnavailable", serviceUnavailableErr, true},
 		{"BadRequest", badRequestErr, false},
 		{"NilError", nil, false},
+		{"ContextCanceled", canceledErr, true},
+		{"ContextDeadlineExceeded", deadlineExceededErr, true},
+		{"WrappedContextCanceled", wrappedCanceledErr, true},
+		{"WrappedContextDeadlineExceeded", wrappedDeadlineExceededErr, true},
 	}
 
 	for _, tc := range testCases {

release-notes/current.yaml

@@ -12,9 +12,10 @@ new features: |
 
 bug fixes: |
   Fixed %ROUTE_KIND% operator to be lower-cased when used by clusterStatName in EnvoyProxy API.
-  Fixed maxAcceptPerSocketEvent being ignored in ClientTrafficPolicy
+  Fixed maxAcceptPerSocketEvent being ignored in ClientTrafficPolicy.
   Fixed the topologyInjectorDisabled and the local cluster was not defined.
   Fixed log formatting of improper key-value pairs to avoid DPANIC in controller-runtime logger.
+  Fixed handling of context-related transient errors to prevent incorrect state reconciliation and unintended behavior.
 
 # Enhancements that improve performance.
 performance improvements: |