Helm chart install - Error INSTALLATION FAILED ... "capi-system" already exists

[dtzar]

What steps did you take and what happened:

helm install capi-operator capi-operator/cluster-api-operator --create-namespace -n capi-operator-system --set infrastructure=azure --set addon=helm --set cert-manager.enabled=true --wait --timeout 90s

Error: INSTALLATION FAILED: failed post-install: warning: Hook post-install cluster-api-operator/templates/infra-conditions.yaml failed: 1 error occurred:
        * object is being deleted: namespaces "capi-system" already exists

What did you expect to happen:
Install completed with no errors.

Anything else you would like to add:
This problem does not seem to happen when you install the infrastructure provider separately. For instance, this succeeds:
helm install capi-operator capi-operator/cluster-api-operator --create-namespace -n capi-operator-system --set addon=helm --set cert-manager.enabled=true --wait --timeout 90s

Environment:

Cluster-api-operator version: 0.6.0
Cluster-api version: latest with 0.6.0
Minikube/KIND version: Docker Desktop 4.22.1
Kubernetes version: (use kubectl version): 1.27.2
OS (e.g. from /etc/os-release): Windows 11 with Ubuntu 22.04 WSL

/kind bug

[alexander-demicev]

/triage accepted