Bump CAPI to v1.11.3

[chrischdi]

What type of PR is this?

/kind cleanup

What this PR does / why we need it:

Supersedes:

Updates Cluster API to v1.11.2.

• [WIP] Bump CAPI to v1.11.2 #5661

Which issue(s) this PR fixes (optional, in fixes #<issue number>(, fixes #<issue_number>, ...) format, will close the issue(s) when PR gets merged)

Fixes #5658
Fixes #5602
Closes #5661

Required Issues/PRs to get this green

• Unexpected rollout when using KCP and updating to v1.11 cluster-api#13017
• [release-1.11] 🌱 e2e: allow usage of v1beta1 and v1beta2 for MachinePools in clusterctl upgrade cluster-api#13023

Special notes for your reviewer:

TODOs:

• squashed commits
• includes documentation
• adds unit tests
• cherry-pick candidate

Release note:

Bump CAPI to v1.11.3

[k8s-ci-robot]

[APPROVALNOTIFIER] This PR is NOT APPROVED

This pull-request has been approved by:
Once this PR has been reviewed and has the lgtm label, please assign mboersma for approval. For more information see the Code Review Process.

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[codecov]

Codecov Report

❌ Patch coverage is 44.95677% with 191 lines in your changes missing coverage. Please review.
✅ Project coverage is 44.46%. Comparing base (2130510) to head (2a090e4).
⚠️ Report is 2 commits behind head on main.

Files with missing lines	Patch %	Lines
azure/scope/managedcontrolplane.go	11.11%	22 Missing and 2 partials ⚠️
azure/scope/machinepoolmachine.go	16.66%	20 Missing ⚠️
azure/scope/machine.go	21.73%	18 Missing ⚠️
util/azure/azure.go	14.28%	18 Missing ⚠️
azure/scope/machinepool.go	46.66%	16 Missing ⚠️
azure/scope/cluster.go	25.00%	15 Missing ⚠️
azure/scope/managedmachinepool.go	21.05%	15 Missing ⚠️
controllers/helpers.go	62.96%	7 Missing and 3 partials ⚠️
exp/controllers/azuremachinepool_controller.go	22.22%	7 Missing ⚠️
api/v1beta1/azuremanagedcontrolplane_webhook.go	42.85%	2 Missing and 2 partials ⚠️
... and 23 more

Additional details and impacted files

@@            Coverage Diff             @@
##             main    #5979      +/-   ##
==========================================
- Coverage   44.54%   44.46%   -0.08%     
==========================================
  Files         279      279              
  Lines       25140    25110      -30     
==========================================
- Hits        11199    11166      -33     
- Misses      13128    13134       +6     
+ Partials      813      810       -3     

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• ❄️ Test Analytics: Detect flaky tests, report on failures, and find test suite problems.

[chrischdi]

Unsure about the occurring errors.

The aks errors show:

The client '765e6bfb-2fd8-4c1e-8ee4-79df6a972ce7' with object id '02ef41cf-1158-4336-9ca6-5d4183184f39'
  does not have authorization to perform action 'Microsoft.Resources/subscriptions/resourceGroups/read'
  over scope '/subscriptions/46678f10-4bbb-447e-98e8-d2829589f2d8/resourceGroups/<resource-group-name>'

[chrischdi]

/test pull-cluster-api-provider-azure-conformance-custom-builds

Unrelated error:

[2025-11-21 13:20:38] 	[ERROR ImagePull]: failed to pull image registry.k8s.io/kube-apiserver:v1.35.0-beta.0.6_5bcb7599736327: failed to pull image registry.k8s.io/kube-apiserver:v1.35.0-beta.0.6_5bcb7599736327: rpc error: code = NotFound desc = failed to pull and unpack image "registry.k8s.io/kube-apiserver:v1.35.0-beta.0.6_5bcb7599736327": failed to resolve reference "registry.k8s.io/kube-apiserver:v1.35.0-beta.0.6_5bcb7599736327": registry.k8s.io/kube-apiserver:v1.35.0-beta.0.6_5bcb7599736327: not found

[damdo]

cc. @mboersma @jackfrancis @willie-yao

[chrischdi]

/retest

[damdo]

/retest

[chrischdi]

/test pull-cluster-api-provider-azure-conformance-custom-builds

Unrelated error (from cloud-init):

[2025-11-24 09:53:27] [ERROR ImagePull]: failed to pull image registry.k8s.io/kube-proxy:v1.35.0-beta.0.6_5bcb7599736327: failed to pull image registry.k8s.io/kube-proxy:v1.35.0-beta.0.6_5bcb7599736327: rpc error: code = NotFound desc = failed to pull and unpack image "registry.k8s.io/kube-proxy:v1.35.0-beta.0.6_5bcb7599736327": failed to resolve reference "registry.k8s.io/kube-proxy:v1.35.0-beta.0.6_5bcb7599736327": registry.k8s.io/kube-proxy:v1.35.0-beta.0.6_5bcb7599736327: not found

[chrischdi]

/retest

[chrischdi]

/retest

Gh networking issues

[chrischdi]

/retest

Flake

[chrischdi]

/retest

[chrischdi]

/hold

To wait for kubernetes-sigs/cluster-api#13060

@mboersma , @willie-yao , @jackfrancis

It would be awesome to get some opinion on this PR and also on kubernetes-sigs/cluster-api#13060 :-)

[chrischdi]

cc @nojnhuh

[chrischdi]

/retest

Unrelated http request ci flake to third party data.

[chrischdi]

/hold cancel

[k8s-ci-robot]

@chrischdi: The following tests failed, say /retest to rerun all failed tests or /retest-required to rerun all mandatory failed tests:

Test name	Commit	Details	Required	Rerun command
pull-cluster-api-provider-azure-conformance-custom-builds	2a090e4	link	false	/test pull-cluster-api-provider-azure-conformance-custom-builds
pull-cluster-api-provider-azure-apiversion-upgrade	2a090e4	link	true	/test pull-cluster-api-provider-azure-apiversion-upgrade

Full PR test history. Your PR dashboard. Please help us cut down on flakes by linking to an open issue when you hit one in your PR.

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