[BUG] Cannot create bootstrap resource

[nnewc]

Rancher Server Setup

• Rancher version: 2.7.6
• Installation option (Docker install/Helm Chart): Helm
  • If Helm Chart, Kubernetes Cluster and version (RKE1, RKE2, k3s, EKS, etc): RKE2

Information about the Cluster

• Kubernetes version: 1.24.14
• Cluster Type (Local/Downstream): Local

User Information

• What is the role of the user logged in? (Admin/Cluster Owner/Cluster Member/Project Owner/Project Member/Custom): Admin

Provider Information

• What is the version of the Rancher v2 Terraform Provider in use? 3.2.0
• What is the version of Terraform in use? 1.5.7

Describe the bug

Cannot create rancher_bootstrap resource

To Reproduce

provider "rancher2" {
  alias = "bootstrap"

  api_url   = var.rancher_api_url
  bootstrap = true
  insecure = true
}

resource "rancher2_bootstrap" "admin" {
  depends_on = [ helm_release.rancher ]
  provider = rancher2.bootstrap
  password = var.rancher_admin_password
  telemetry = true
}

Actual Result

module.rancher.rancher2_bootstrap.admin: Creating...
2023-11-02T20:59:41.747-0500 [INFO]  Starting apply for module.rancher.rancher2_bootstrap.admin
2023-11-02T20:59:41.747-0500 [DEBUG] module.rancher.rancher2_bootstrap.admin: applying the planned Create change
2023-11-02T20:59:41.747-0500 [DEBUG] provider.terraform-provider-rancher2_v3.2.0: 2023/11/02 20:59:41 [INFO] Doing login
2023-11-02T20:59:41.747-0500 [DEBUG] provider.terraform-provider-rancher2_v3.2.0: 2023/11/02 20:59:41 Getting from  https://10.7.2.188.nip.io/ping
2023-11-02T20:59:41.905-0500 [DEBUG] provider.terraform-provider-rancher2_v3.2.0: 2023/11/02 20:59:41 Time to get req:  157  ms
module.rancher.rancher2_bootstrap.admin: Still creating... [10s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [20s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [30s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [40s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [50s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [1m0s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [1m10s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [1m20s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [1m30s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [1m40s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [1m50s elapsed]
module.rancher.rancher2_bootstrap.admin: Still creating... [2m0s elapsed]
2023-11-02T21:01:41.936-0500 [DEBUG] State storage *statemgr.Filesystem declined to persist a state snapshot
2023-11-02T21:01:41.936-0500 [ERROR] vertex "module.rancher.rancher2_bootstrap.admin" error: [ERROR] Timeout trying to login with admin user: Doing user login: error Unauthorized
╷
│ Error: [ERROR] Timeout trying to login with admin user: Doing user login: error Unauthorized
│
│   with module.rancher.rancher2_bootstrap.admin,
│   on modules/rancher/bootstrap.tf line 9, in resource "rancher2_bootstrap" "admin":
│    9: resource "rancher2_bootstrap" "admin" {
│
╵
2023-11-02T21:01:41.967-0500 [DEBUG] provider.stdio: received EOF, stopping recv loop: err="rpc error: code = Unavailable desc = error reading from server: EOF"
2023-11-02T21:01:41.969-0500 [DEBUG] provider: plugin process exited: path=.terraform/providers/registry.terraform.io/rancher/rancher2/3.2.0/darwin_arm64/terraform-provider-rancher2_v3.2.0 pid=11011
2023-11-02T21:01:41.969-0500 [DEBUG] provider: plugin exited

Rancher is reachable via curl:

$ curl https://10.7.2.188.nip.io/ping  -kv
*   Trying 10.7.2.188:443...
* Connected to 10.7.2.188.nip.io (10.7.2.188) port 443 (#0)
* ALPN: offers h2
* ALPN: offers http/1.1
* (304) (OUT), TLS handshake, Client hello (1):
* (304) (IN), TLS handshake, Server hello (2):
* TLSv1.2 (IN), TLS handshake, Certificate (11):
* TLSv1.2 (IN), TLS handshake, Server key exchange (12):
* TLSv1.2 (IN), TLS handshake, Server finished (14):
* TLSv1.2 (OUT), TLS handshake, Client key exchange (16):
* TLSv1.2 (OUT), TLS change cipher, Change cipher spec (1):
* TLSv1.2 (OUT), TLS handshake, Finished (20):
* TLSv1.2 (IN), TLS change cipher, Change cipher spec (1):
* TLSv1.2 (IN), TLS handshake, Finished (20):
* SSL connection using TLSv1.2 / ECDHE-RSA-AES128-GCM-SHA256
* ALPN: server accepted h2
* Server certificate:
*  subject: [NONE]
*  start date: Nov  1 19:32:26 2023 GMT
*  expire date: Jan 30 19:32:26 2024 GMT
*  issuer: O=dynamiclistener-org; CN=dynamiclistener-ca@1698867070
*  SSL certificate verify result: unable to get local issuer certificate (20), continuing anyway.
* Using HTTP2, server supports multiplexing
* Copying HTTP/2 data in stream buffer to connection buffer after upgrade: len=0
* h2h3 [:method: GET]
* h2h3 [:path: /ping]
* h2h3 [:scheme: https]
* h2h3 [:authority: 10.7.2.188.nip.io]
* h2h3 [user-agent: curl/7.84.0]
* h2h3 [accept: */*]
* Using Stream ID: 1 (easy handle 0x15200bc00)
> GET /ping HTTP/2
> Host: 10.7.2.188.nip.io
> user-agent: curl/7.84.0
> accept: */*
> 
* Connection state changed (MAX_CONCURRENT_STREAMS == 128)!
< HTTP/2 200 
< date: Fri, 03 Nov 2023 22:02:11 GMT
< content-type: text/plain; charset=utf-8
< content-length: 4
< cache-control: no-cache, no-store, must-revalidate
< x-api-cattle-auth: false
< x-content-type-options: nosniff
< strict-transport-security: max-age=15724800; includeSubDomains
< 
* Connection #0 to host 10.7.2.188.nip.io left intact
pong

Expected Result

bootstrap resource is created

Additional context

Cluster is using CIS profile. Looking for any additional steps to debug this issue.