Update Kubernetes version to 1.34.1 in test infrastructure

[Copilot]

Update Kubernetes version to latest (1.34.1) in tests, CI, and Makefile

Summary

Successfully updated Kubernetes version from 1.29.0 to 1.34.1 and upgraded the setup-envtest tool to the latest version.

Changes Made

Updated constraint/Makefile:

• Changed KUBERNETES_VERSION from 1.29.0 to 1.34.1 (latest available in kubebuilder-tools)
• Updated setup-envtest tool from v0.0.0-20230118154835-9241bceb3098 to v0.0.0-20251120113359-d81cc2de7a54
• Fixed typo: GCO_ENABLED -> CGO_ENABLED

Verification Completed

• [x] Explore repository structure and identify where Kubernetes versions are referenced
• [x] Update Kubernetes version in constraint/Makefile from 1.29.0 to 1.34.1
• [x] Update setup-envtest tool version to latest (v0.0.0-20251120113359-d81cc2de7a54)
• [x] Fix typo in environment variable name
• [x] Run tests to ensure everything works correctly - All tests passing ✓
• [x] Run linting to verify code quality
• [x] Run code review
• [x] Run security checks

Rationale

The old version (1.29.0) was failing with "403 Forbidden" errors when trying to download kubebuilder-tools from GCS. The root cause was that the setup-envtest tool was outdated (from 2023) and pointing to the old GCS bucket. By updating to the latest setup-envtest tool and using Kubernetes version 1.34.1 (the latest available in the new kubebuilder-tools repository), the tests now pass successfully.

Test Results

• All unit tests pass with the new Kubernetes version
• Linting completes successfully with no errors
• No security vulnerabilities detected

Security Summary

No security vulnerabilities were introduced or discovered during this update.

Original prompt

Update kubernetes version to latest version in tests, ci and makefile.

---

✨ Let Copilot coding agent set things up for you — coding agent works faster and does higher quality work when set up for your repo.