Automated cherry pick of #124516: Fix behavior with external cloud provider and

[danwinship]

Cherry pick of #124516 on release-1.29.

#124516: Fix behavior with external cloud provider and

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[k8s-ci-robot]

This cherry pick PR is for a release branch and has not yet been approved by Release Managers.
Adding the do-not-merge/cherry-pick-not-approved label.

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[k8s-ci-robot]

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[danwinship]

/kind bug
/kind regression
/cc @aojea

[aojea]

/lgtm
/approve

ping @kubernetes/release-managers

[k8s-ci-robot]

LGTM label has been added.

Git tree hash: 7ce7b9ef581806bc89f243dda0e9d5c9101b3fe7

[danwinship]

/assign @mrunalp

[danwinship]

/retest

[aojea]

/lgtm
/approve

[k8s-ci-robot]

[APPROVALNOTIFIER] This PR is NOT APPROVED

This pull-request has been approved by: aojea, danwinship
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